Heat oil in a pan and crackle the cumin seeds. Then add the bay leaf, grated ginger, chopped garlic and green chili. Stir well.
Once slightly cooked, add one roughly chopped onion and stir.
Add little bit of salt and cook till it goes pink.
Add the chopped tomatoes and cook till they are mushy.
Switch off the flame and let the pan cool a little bit. Then add in the smooth yogurt and stir well for about a minute.
Add the turmeric, coriander powder, cumin powder, red chili powder and nutmeg.
Start the flame, stir well on low heat and cook until starts getting a simmer.
Add the sugar and mix well.
Now add the chopped spinach and keep stirring and cook till the volume reduces, and the spinach is slightly wilted. Cook for another minute and then switch off the flame.
Add the coriander, mix well into a homogenous paste.
Heat up a pan, add the paste and get it to a simmer.
Add more salt if required and add the cream. Mix well.
Grate about 25-30 grams of paneer straight in the pan, and chop rest.