First soak cashews in warm water and keep it aside for 10 minutes.
Meanwhile prepare the spinach paste. Heat 1 tablespoon of oil in a pan on medium heat.
Once hot add onion, green chili, ginger and garlic.
Cook till onions are translucent.
Then mix in tomatoes. Cook till tomatoes are soft.
Add washed spinach leaves. It will get wilted within 2-3 minutes.
Switch off the stove and let it cool a bit.
Once cooled, grind into smooth paste.
Also make paste from soaked cashew nuts.
Wipe out the pan using paper towel if there is any moisture.
Heat another 1 tablespoon of oil in the same pan on medium heat.
Once hot add cumin seeds and let them sizzle.
Then add mushrooms and salt. Saute for 2 minutes.
Then mix in coriander powder and red chili powder. As it cooks mushroom leaves water and will continue to cook in its own water. Saute till cooked and tender.
Then add prepared spinach puree. Mix well and let it come to a boil. Adjust the gravy consistency by adding water.