Put spinach and onion together in vessel. Add little sugar to retain the colour of spinach. Add ½ cup of water. Cover and cook till they become soft. Let it cool.
Grind cooked spinach mixture till it becomes very smooth.
Pass the ground mixture through a sieve. Add water if necessary to get soup consistency. Boil the liquid for few minutes. Remove from fire and add salt and pepper. Serve hot with grated paneer.