First blanched the spinach, this helps to keep the spinach color bright. To blench the spinach, boil about 6 cups of water in a saucepan add the spinach boil for one minutes. Drain the water and put the spinach in ice cold water for about two minutes. Drain the water.
Blend the spinach, ginger and green chili, spinach should be creamy but not pasty.
Soak the cubed paneer in about three cups of hot water, for about 5 minutes or more. This helps to give paneer soft texture. Set aside.
While cooking, spinach can splatter, use larger sauce pan. Heat the oil in a sauce pan, over medium high heat. Test the heat by adding one cumin seed to the oil; if it cracks right away it is ready.
Add cumin seed, and asafetida. After cumin seeds crack, add the tomatoes and stir fry for 1-2 minutes, tomatoes should be tender not mushy. Add coriander, turmeric, red chili powder, salt, and sugar, stir and add the spinach.
After spinach comes to boil lower the heat to low, and let the spinach cook for about 5-6 minutes do not cover the pot. This helps keeping the green color of spinach.
Mix the flour to 1/2 cup of water and add to the spinach, also add the cream. Mix it well and let it cook for five minutes. If needed add little more water.
Drain the paneer and fold it gently with spinach and let it simmer for about five minutes.
Palak paneer is ready, serve with naan, tandoori roti, Paratha.