Pour milk into the heavy bottom pot and bring it to boil on medium heat.
Keep stirring to prevent it from burning and forming malai on top.
once milk comes to a boil, simmer and pour ½ cup curd. You can alternatively use lemon juice or vinegar.
Stir it till the milk curdles.
You can add more curd or lemon juice/vinegar to coagulate the milk and water separate completely.
Drain the curdled milk over a cloth lined over a colander.
Rinse off the curdled milk with fresh water to stop the cooking process or sourness from curd.
Squeeze off the water completely.
Now fold the cloth tight and place a heavy weight on the paneer for 30 minutes to set.
Cut paneer into cubes.
To store the paneer, cover it with plastic foil and keep it in an airtight container.