Press SAUTE mode on Instant Pot. Add oil in to the POT.
Once oil is hot add cumin seeds, let the cumin splutter then add onions, minced ginger and garlic, green chili and fry until onions turn light brown.
Next add diced tomato ,red chili powder, turmeric powder, coriander powder, salt and cook for 1-2 minutes.
Add water and deglaze the pot.Next add in the baby spinach .
Close the lid on the pot, and turn pressure valve to SEALING position.
Press CANCEL button on Instant Pot.Set the pot to MANUAL/PRESSURE COOK (High Pressure) and set timer to 2 Minutes.If using frozen spinach then set timer to 1 Minute.
Do a QUICK RELEASE(QR).Blend the ingredients in the pot to a creamy texture using an immersion blender.If you dont have immersion blender then take the mixture out ,cool it and then blend in a regular blender and add the mixture back to the instant pot.
Add garam masala ,kasuri methi and paneer and mix well.You can also add some fresh cream or cashew cream.No need to boil/saute again after adding paneer.Let it sit for 5 minutes
Delicious palak paneer is ready. Serve it with your favorite Indian bread variety (roti / naan / kulcha / paratha) or even plain rice.