Keep stirring the milk as it can burn at the bottom
Curdle the boiled milk by adding 4 tbsp white vinegar
Milk solids and water will immediately start separating
Lower flame, stir for 2-3 minutes so it curdles well
Once water and milk solids are separated, strain the water out
With the paneer in the strainer, wash paneer under cold water to even out texture
Wrap the paneer in a cotton/muslin cloth (can use a cotton handkerchief)
Squeeze out excess water
Wrap paneer in the cloth and place a heavy weight on top
Keep paneer under heavy weight for an hour
Remove paneer from cloth and place on a plate
Rub paneer between palms for 4-5 mins to give it smooth texture
Using hands shape paneer in flat square shape
Cover with damp cloth to keep it moist
Refrigerate overnight or if you made it in the morning let it ser in the fridge during the day to use in the evening (5-8 hours)
Once paneer is set, cut into cubes (can be stored in freezer)
Notes
If you like fried paneer, you can instead bake this in the oven for 5-10 mins to get the same results. This baked paneer can also be stored in the freezer.