Lightly press the tofu and remove excess water. Cut it in to small cubes.
Add 2 tbsp oil in a sauce pan and lightly fry the tofu. Turn the tofu, so it browns evenly. This will take about 5 minutes. Take out of sauce pan and keep the tofu aside.
Preparing Spinach
Start the instant pot in sauté mode. Heat 1 tbsp oil and add cumin seeds. (You can do this in parallel while tofu is frying)
When cumin seeds start to splutter, add ginger, garlic, red chili and onions. Sauté for about 2 minutes until onion is lightly browned.
Stir in the tomato, spices and saute for another 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 for 2 minutes.
Once the instant pot beeps, let the pressure release naturally for 5 minutes, then manually release the pressure.
Blend the spinach and other ingredients in the pot to a creamy texture using an immersion blender.
Add the tofu and let it rest for 5 minutes, so it soaks in the flavors of the curry.
Garnish with coconut or cashew cream if desired. Palak Tofu can be served with naan, roti or paratha.
Notes
Stovetop Variation: The exact same preparation can be done in a sauce pan. Do not use a non-stick pan, if you plan to use an immersion blender to puree the spinach.