In a large pot, heat the oil and then add the chopped onions, garlic, chilies, and ginger until softened. Add the coriander, cumin, and chili powder and mix well. Add the spinach.
Cook until the spinach softens and shrinks, about 5 minutes.
Place it all into a blender with the yogurt and water. Blend until smooth. Taste the spinach mixture and add salt if needed.
Put the paneer in a skillet with a few tablespoons of olive oil or ghee (clarified butter) and fry the paneer to warm it through. Add the spinach mixture to the paneer and heat before serving.