Select sauté on the Instant Pot and adjust to normal. When the pot is hot add oil.
When the oil is hot add in the chopped eggplants and let them sauté for 3 minutes until they brown. Furthermore, add in the paneer and let both paneer and eggplants sauté for another 2 minutes. Turn the paneer gently. The paneer will brown slightly.
After 5 minutes are up, add in asafoetida, whole dried red chili pepper, serrano pepper, whole black cardamom pods, cloves, green cardamom pods and cinnamon stick. Stir and let the whole spices sauté for a minute.
Then add in Kashmiri chili powder and ¼ cup water. Stir well.
Then in about 30 seconds to a minute add in ground fennel, ground ginger, ground cumin, garam masala, salt and stir gently without breaking the paneer or the eggplant. Also, add in ¾ cup water. Again, give it a good stir, gently.
Finally, close the lid and select manual/high pressure for 2 minutes.
When cooking is complete, use quick pressure release to depressurize. Then, transfer the cooked dish in a serving bowl and serve over steamed rice.