Start the instant pot in sauté mode. Heat oil and add cumin seeds. When cumin seeds start to splutter, add ginger, garlic, green chili and onions. Sauté for 2 minutes.
Add tomato and spices. Stir and let it cook for 2 minutes.
Add water and deglaze the pot. Add in the spinach. Press cancel and close the instant pot lid with vent in sealing position. Set on manual or pressure cook mode on high pressure for 2 minutes.
Once the instant pot beeps, do a 5 minute natural pressure release. Blend the ingredients in the pot to a creamy texture using an immersion blender.
Add the paneer and garam masala. Let it sit for 5 minutes, so the paneer soaks in the flavors.
Palak Paneer is ready to be served with naan, roti or paratha.