Procedure:

Separate the palak leaves from the stem, blanch and cut the leaves into small pieces. Grind the leaves into a smooth paste.

Cut the Paneer into cubes and deep-fry with a little salt till golden brown. Keep aside.

Heat oil in a pan. Add the chopped onions. When the onion become light golden in colour, add the ginger paste, the garlic paste and the green chili paste. Cook till oil leaves the pan. Now add the Garam Masala Powder and palak. Mix well. Add milk along with ½ cup water and let it cook for 3 mins. Add the paneer. Add salt to taste and sugar. Let it cook till it is of a thick consistency.