Press SAUTE on Instant Pot. Add oil to the POT. Once the oil is hot, add cumin seeds and let the cumin splutter.
Next add roughly diced onions, ginger, garlic, green chili, and saute until onions turn light brown.
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 fresh spinach.
Close the Instant Pot with pressure valve to Sealing. Cook on High Pressure for 2 minutes. If using frozen spinach then set the timer to 1 Minute.
Once the pot beeps, Do a QUICK RELEASE (QR).
Blend the ingredients in the pot to a creamy texture using an immersion blender. If you don't have an 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.
Lastly add garam masala, kasuri methi, and pan-fried tofu and mix well. You can also add some fresh cream or cashew cream. No need to boil/saute again after adding Tofu. Let it sit for 5 minutes.