Turn on SAUTE, and heat the oil. Add chopped onions, green chili, garlic and saute them for a minute.
Add baby spinach, coriander powder, salt, turmeric, garam masala, and water, and stir it once. Turn off SAUTE mode.
Close the instant pot lid, set the timer on STEAM for 1 min, and vent closed. When the timer is done, do a quick release.
Using a hand blender or Vitamin, blend it until you see silky smooth pureed spinach sauce.
Add lime juice, and panner cubes to purred spinach sauce and give it a gentle stir. Paneer gets cooked in that warm gravy.
For tempering: In a small pan, heat oil and add cumin seeds, let it splatter. add the broken dry red chili and saute until its releases toasty aroma.
Use the tadka over the palak panner. Serve it with rice or roti.