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 minutes. Drain the water and put the spinach in ice cold water for about two minutes. Drain the water.
While cooking, spinach can splatter, use larger sauce pan. Heat the oil in a sauce pan, over medium high heat.
Drain the paneer and add gently in the spinach gravy and let it simmer for about five minutes.