Cut paneer in 1-1 inch square chunks. Add 2 tbsp oil in a pan and heat it sufficiently. When oil is sufficiently hot, place the chunks into it and shallow fry until they turn slightly brown on both sides. Take out fried paneer chunks in a plate.
Add 1 tbsp more oil in a pan. When oil is sufficiently hot add cumin seeds. After sauteing cumin seeds, add chopped green chilly, turmeric powder, coriander powder, finely chopped tomato and saute for while.
Add chopped fenugreek leaves, finely chopped spinach, salt, red chilly powder and sugar. Mix everything really well. Cover and cook the sabzi on medium flame for 5 minutes and check later.
Sabzi is ready, now add paneer chunks into and mix gently. Cover the sabzi again and cook for 2 to 3 more minutes on low flame.
Paneer methi palak sabzi is ready, take it out in a bowl. Serve this tantalizing sabzi with parantha, chapatti, naan or rice and relish eating.