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Cut the paneer into small pieces.
Heat 1 ½ tablespoons of ghee or oil in a large skillet over medium heat.
Add the paneer pieces and pan fry until golden brown, about 2 to 3 minutes per side, and season while frying. Transfer the fried paneer to a plate.
Boil the baby spinaches for about a minute, drain when done.
Transfer the spinach to a food processor and blend. You don’t need to squeeze the excess liquid from the spinach beforehand.
Heat a large skillet with 2 tablespoons of ghee or safflower oil over medium-high heat. Add the diced onions and cook them until golden. Next, add the minced ginger, garlic, diced serrano pepper, and cumin seeds and cook for 30 seconds. Then, add the garam masala, turmeric, and cayenne pepper. Stir to coat the onions with the dried spices.
Transfer the processed spinach into the skillet.
Add the heavy cream and salt. Cover the skillet with a lid and reduce the heat to medium. Let the spinach sauce simmer for about 5 minutes.
Uncover the lid and add the pan-fried paneer to the spinach sauce. Turn off the heat. Serve the palak paneer with basmati rice.