First blanch the spinach, this helps to keep the spinach color bright. To blanch the spinach, boil about 6 cups of water in a saucepan, and let the spinach boil for one minute. 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.
Soak the cubed paneer in about three cups of hot water, for about 5 minutes. This helps to give the paneer a soft texture. Set it aside.
While cooking, spinach can splatter, use larger saucepan. Heat the oil in a saucepan, 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 blended spinach and stir. Add coriander, salt, and sugar, stir.
After spinach comes to boil lower the heat to low, and let the spinach cook for about 5-6 minutes partially cover the pot, because spinach will splatter. I don’t cover the pan fully because this helps keep 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 a little more water.
Drain the paneer and fold it gently with spinach and let it simmer for about five minutes.
Palak paneer is ready, add the tomatoes and turn off the heat. Garnish it with shredded or crumbled paneer.