Boil the washed spinach in a pot for 10 minutes with 1/2 cup of water.
Turn off the burner. Let the mixture cool for 10 minutes.
Finely chop onions.
Crush ginger and garlic cloves together.
Grind the spinach in a mixture by squeezing the water from spinach.
Heat oil in a pan. Add cumin seeds and asafoetida. When cumin seeds starts to sputter add cut green chilies, onions, bay leaves, salt and crushed ginger - garlic. Saute mixture for 5 minutes.
Add kasoori methi.
Add spinach puree, garam masala and let the mixture simmer for 10 minutes.
Add paneer cubes and let it cook for 5 minutes.
Notes
I have not fried the paneer cubes. In my opinion when you fry the paneer it makes the paneer tough.