Heat a pan and add oil. When the oil is hot, lower the flame and add the fenugreek (methi) seeds. After letting them sputter (about 5 secs) when they begin to discolour, add the cumin (jeera) seeds. Sauté for 5secs.
Add the chilli ( I like to use fresh red chilli instead of green to give a contrasting colour to the spinach and the capsicum).
When the chilli has scalded, add the onion and the slices of scallion bulb and sauté till the onions become translucent.
Add ginger pieces, sauté for 5 secs, add the crushed garlic. Sauté for 20 seconds stirring so the garlic does not brown.
Add and sauté the capsicum for 20 seconds.
Add the turmeric powder, sauté for 5 seconds.
Add the small cubes of tomato, reserving the larger pieces for the next step.
Add the spinach scallion mixture and stir. Add 2 tbsps of water, stir. Add the larger pieces of tomato, and sauté the curry for 5-7 minutes on a medium flame, stirring frequently till the spinach is cooked.
Add tomato puree, mix it into the curry and sauté for 1 minute.
Add salt and then add yogurt, whisking it into the curry till it is well blended.
Dice the paneer and add to the curry. Stir so that the spinach and gravy cover the paneer, and sauté on low flame for 2 minutes.
Remove from the flame and transfer into a serving dish so that the curry does not continue to cook in the heat of the pan.
Serve with hot phulkas or naan or with rice and dal. I confess, I like palak paneer with hot rice, ghee and my tomato rasam!