Prepare Masala - Press SAUTE mode on the Instant Pot. Once the pot is hot, add oil, and once hot, add cumin seeds. Saute the cumin seeds for 30 seconds. Now add green chilies. Saute for 30 seconds or so. Add onions and season with a little salt. Stir and cook the onions down for 5-6 minutes until lightly brown. Now add ginger and garlic. Saute for 30 seconds. Add tomatoes and season with a little salt. Stir and cook for a minute or two.
Add Ground Spices - turmeric powder, red chili powder, coriander powder, cumin powder, and Kashmiri red chili powder. Stir and cook for 30 seconds. Add a tablespoon of water to prevent the spices from burning and stir. Cover the Instant Pot with a lid and cook the tomatoes down for 3-4 minutes. Once done, add another 1-2 tablespoons of water to deglaze the pan. Press CANCEL on the Instant Pot.
Add Spinach - Add a pound of fresh spinach. Season with salt. Gently stir. You don't need to combine the masala mixture with the spinach at this time. Press HIGH PRESSURE for 2 minutes. Allow the steam to naturally release for 10 minutes and then manually release the remaining steam. This process will take about 20 minutes.
Saute Paneer - While the spinach cooks, heat a nonstick ceramic pan on medium heat, once hot, add half a tablespoon of oil followed by cubed paneer that has been cubed, soaked, and drained. Saute the paneer until golden for 5 minutes at the most, anything more, and you'll end up with a tougher texture. Turn off the stove and transfer the paneer to a bowl.
Blend Spinach - Open the Instant Pot and stir the spinach with the masala mixture. Use an immersion blender to blend the spinach. We want to keep the texture so don't overblend, rather pulse it.
Add Sour Cream - Press SAUTE on the Instant Pot again. Add sour cream, garam masala, and dry fenugreek leaves. Stir it. The spinach will slightly lighten and become creamy. Add the sauteed cube paneer. Stir and cook for a minute or two. Press CANCEL on the Instant Pot. Your palak paneer is ready.