Add spinach to a large pot with a 1/2 inch of water and 1/2 tsp of salt Cook spinach for 2-3 min until the leaves wilt, then immerse the leaves in ice-cold water. Drain spinach completely.
Puree the spinach in a food processor with about 1/4 cup of water. The puree should have a smooth and thick consistency - you may need to add a few tablespoons more water to blend,
In a large pan, heat 1 tsp of ghee over medium heat and brown the paneer for a few minutes turning frequently. Remove paneer once lightly browned on most sides. Wipe the pan clean.
In the same pan, heat the remaining ghee and add the onion, garlic, ginger, cumin, and cardamom. Fry for 2-3 minutes until the fragrance of the spices is released.
Add the tomatoes, cinnamon stick, cloves, garam masala, chili, and salt along with 3/4 cup of water. Cover and cook until the tomatoes and onion are completely softened. Add more water as needed. The consistency should be like a chunky tomato sauce.
Reduce the flame and add the pureed spinach. Stir to combine and allow to cook for about 2-3 minutes until mixture is hot and bubbly.
Add the paneer and mixed to combine. Taste and adjust salt as needed.