Cut paneer into cubes. Chop the onions. Peel and dice tomatoes.
Heat little water and cook palak till it shrinks. Allow to cool and grind to a smooth paste.
Grind cashews and poppy seeds to a smooth paste by adding little water.
Heat rest of the oil and fry onions till crisp and golden.
Add coriander powder, jeera powder, chilli powder and then tomatoes.
Stir for a minute and then add whipped yogurt.
Cook in reduced flame till oil floats on top.
Add salt, ground palak leaves, turmeric powder and cook for few minutes.
Mix cashew, poppy paste and pour just enough water required for the gravy.
Cook on medium flame till gravy becomes thick. Add paneer pieces and garam masala powder, mix well and cook for 2 more minutes. Remove from flame.
Serve hot.