Swapping tofu for cheese is an easy way to turn Palak Paneer into a plant-based favorite. Serve hot with basmati rice and naan.
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Bring a small pot of water to a boil. Place the sliced tofu in a strainer set over a large bowl. Pour the boiling water over the top of the tofu. Discard the water, transfer the tofu to a plastic freezer bag and add the nutritional yeast, lemon juice and salt. Toss the tofu around to coat in the yeast mixture, then press out as much air as possible and seal the bag. Refrigerate up to 3 days, or overnight at minimum.
When ready to prepare, place the spinach, water, garlic, ginger, green chili, tomato, salt, and sugar in the bowl of a large blender. Process until pureed. Set aside.
Drain the marinated tofu. Heat the tablespoon of vegetable oil in a medium skillet over medium heat. Add the cumin, cayenne, and drained tofu. Toss well and saute for 4 to 5 minutes, until lightly browned.
Pour the spinach mixture into the pan; stir well, cover the pan, and turn the heat down to low. Cook for 10 minutes, or until the garlic has lost its raw bite. Taste and add salt as needed.
Transfer to a serving dish. Drizzle with coconut milk, if desired. Serve hot with plenty of basmati rice and naan.