Soak the cashews in enough water for about 15 minutes (or 30 minutes) in advance.
Cut the paneer into small to medium sized cubes, keep aside.
Wash the spinach leaves very well and transfer it to the blender.
Add cashews (you can discard the water used for soaking the cashews) and 4 cups of water also to the blender and make a smooth mixture of cashew and spinach.
Heat oil in a pan and add the cumin seeds, fry the cumin seeds lightly.
Add the spinach cashew mixture to the pan, stir well.
Add salt and ginger garlic paste, stir the contents again.
Cook in medium heat until the mixture starts boiling, then reduce the heat to low and cook for another 5 to 6 minutes or until the mixture starts to separate from the oil.
Add the sugar and spices -turmeric powder, red chili powder and also the black pepper powder to the pan, stir the mixture and cook for another 1 minute.
Add the paneer cubes to the pan and cook the mixture for another 3 to 4 minutes.
Creamy and delicious palak paneer is ready to serve, enjoy the palak paneer hot with rice, chapathi or poori as you wish.