Traditionally, Paneer is made from buffalo or goat milk. After resting it is shaped into blocks and then cut into cubes for marinating, grilling or pan-frying for use in a wide range of recipes. Paneer is a great foil for the lush and exotic South Asian spice palette, and is used in many of the same ways in Indian cooking that Tofu is used in Asian cooking.
Place milk in a large non-reactive saucepan and heat until boiling, stirring frequently to prevent scorching. Immediately reduce heat to low and stir in lemon juice or vinegar. Stir gently and continuously, and very quickly coagulation will occur* and the curds (milk solids) will begin separating from the whey (liquid). Remove from heat and continue stirring.
Place a double layer of cheesecloth or loosely woven cotton muslin in a collander, leaving several inches hanging over the edge all around, then pour mixture into the cheesecloth and set over a bowl to drain for a few minutes.
Gather up the edges of the cheesecloth and twist to squeeze out excess whey. Rinse the cheese bag under running water to remove excess whey. Flatten the ball into a uniform disk shape (still in the cheesecloth), place on a rimmed dish, and set a plate or sheetpan on top. Place in the fridge or very cool spot for one to two hours.
More cheesy ideas, including recipes for making the fresh Greek cheese known as Myzithra, and the fresh Mexican cheese known as Queso Fresco can be found in the Cheese and Dairy section of this website.