Boil the spinach for 3-4 minutes. Refresh it and grind to a smooth paste. Keep aside. Heat 1 tbsp. oil in a non-stick pan and saute the paneer cubes till light brown. Keep aside.
Heat the remaining oil and temper with cumin seeds and asafoetida. Add the chopped garlic and saute till it changes colour.
Add the onion and continue to saute till light brown. Now add the ginger-garlic paste, tomato paste, turmeric powder, coriander-cumin powder, red chili powder and garam masala powder mixed with 2-3 tbsp. water.
Fry till the oil separates. Add the pureed spinach, salt and kasuri methi. Simmer on low flame for 2 minutes.
Add the butter and the fried paneer. Continue to simmer till the gravy thickens (4-5 min.). Add lime juice and take off the flame. Garnish with grated paneer and serve hot with naan or tandoori roti.