Heat oil over medium heat in a wide, shallow pan. Add butter and as it melts, add the jeera. When it crackles, add bay leaves. In 30 seconds, when the leaf's edges start curling, add chopped tomato. Cook for 3-4 minutes. Add onion. Cook till it becomes pink. Stir well so it doesn't stick.
Add spinach. It will sizzle. Cook it, stirring well for about 10 minutes. When it's totally wilted, puree it using a hand blender. Then add paneer. I like to use raw paneer as it's more healthy. Season with garam masala. Serve.
If you want to add fried paneer here's what to do: In a karahi, fry the paneer pieces on medium heat till they turn slightly brown. Add after spinach has cooked completely. Use some for garnish.
Add chopped green chilli for spice when you add jeera.