Heat 1 tablespoon vegetable oil in a skillet over medium heat; cook and stir spinach in hot oil until softened, 3 to 4 minutes. Transfer spinach to a blender or food processor; puree until spinach becomes a coarse paste.
Heat remaining 1 tablespoon oil in a saucepan over medium heat; cook cumin in hot oil until fragrant, about 30 seconds. Add onion, green chile peppers, and garlic. Cook and stir until onion is tender, 3 to 4 minutes. Stir in tomatoes and cover saucepan. Simmer for 1 minute and add blended spinach paste, water, ground coriander, red chile powder, and salt. Continue to cook until heated through, 2 to 3 minutes.
Stir paneer into spinach mixture and simmer until hot, 1 to 2 minutes more.
