Cut the tofu into 1-inch cubes. Pat dry with a paper towel or clean kitchen towel to remove excess moisture.
In a bowl, toss the tofu cubes with nutritional yeast and salt until evenly coated. Heat oil in a large pan or wok over medium-high heat. Add tofu and cook for about 5 minutes per side, flipping only once, until golden and crispy. Set aside.
Palak (Spinach)
In a blender, combine thawed spinach with 1 cup of water. Use less water for a thicker consistency or more for a thinner one. Blend until smooth and set aside.
Heat oil in a non-stick pan or wok over medium heat. Add cumin seeds and cook until they begin to crackle.
Stir in chopped onion, ginger, garlic, and green chiles. Sauté for 3 to4 minutes until fragrant and golden.
Add the chopped tomatoes, tomato paste, red chili powder, coriander powder, garam masala, turmeric, and salt to taste. Mix well and cook for another 2–3 minutes.
Pour in the blended spinach and coconut milk. Stir to combine. Reduce heat to medium-low, cover with a lid, and simmer for 5 minutes. Optional: For a smoother consistency, carefully transfer the spinach mixture back to the blender and blend until velvety.
Add the cooked tofu "paneer" to the pan and mix gently to coat. Serve warm with rice, roti, or naan.
Notes
This recipe is a plant-based twist on palak paneer. While it’s not traditional, it keeps the heart of the dish, rich spices, creamy spinach, and satisfying bites, while making it completely dairy-free.
For that signature creamy texture, don’t skip the coconut milk. You can adjust the amount to suit your taste.
Be sure to use high-quality super firm or extra firm tofu. Avoid frozen-and-thawed tofu here, the texture doesn’t hold up well for this style of cooking.
Not a fan of heat? Skip the green chilies. Love spicy food? Go ahead and toss in a few more.