Pan fry the chopped spinach till dry. Keep aside. Heat oil in the same pan and temper with cumin seeds, bay leaves, cinnamon, cardamoms, cloves and mace. Saute for a few seconds.
Add the onion, ginger, garlic and green chilies. Fry till light brown. Now add all the dry spices (except garam masala). Mix everything well.
Add the tomato paste, spinach, coconut milk, curry leaves, paneer cubes, garam masala powder and 1/2 cup water. Give it a stir and cover.
Simmer for 2-3 minutes. Switch off the flame and transfer to a serving dish. Serve as a side dish with either plain steamed rice, pulao, plain biryani, naan, tandoori roti or chapatti.