In a heavy bottomed pan(be sure to use deep pan), pour the milk, turning the heat to high. Stir the milk constantly to ensure milk does not stick to the bottom of the pan.
When the milk begins to boil, add vinegar.
You will notice that the milk begins to curdle. Once the entire milk curdles (this happens when you see the whey-water looks greenish) strain the chenna/cheese mixture by keeping a cheese cloth or sefa on a strainer.
Bring paneer into the center to squeeze out excess water.
Place the cheese cloth bundle in flat surface with possibly holes to drain out moisture and place another flat plate/cookie sheet or anything that works for you on top of the cheese cloth. Now place something heavy like a pile of books or a brick on the cookie sheet in a way that the weight is directly on the paneer cloth. This will press down the paneer.
Let it sit under the weight for 2 to 3 hours.
Remove the paneer from the cloth. Now your paneer is ready.
Cut the paneer into desired shape.
Now if you want your paneer just like storebought, read following instruction to make your paneer smooth just like cheese
Once all the water is draned, grind the paneer into the grinder and grind slowly till you get smooth texture.
When paneer is smooth, take any square plastic box and place all the grended paneer into the box and put into the freezer for half an hour.
Take out box and cut into cubes, do not try to take out yet. Put it back into the freezer and after 45-60min., take out all the paneer from the box.
Store it in the refrigerator in an air tight container. A food grade container can make it stay for a week.
If not using in about 2-3 days then fry paneer little bit only and then freeze it.
Tips for making Paneer
•A softer version of this cheese can be substituted in some but not all recipes calling for farmer's cheese or ricotta.
•After frying paneer, throw fried paneer into the warm water. This process makes paneer more softer and take off excessive oil.
•You may end up adding more than 15 ml (1 Tbsp) of the acid before the curds separate from the whey.
•The more fat content in the milk, the better output. Paneer made from a high fat content milk will be tastier.
•If cheese cloth is not available, use a "babywindeln" instead.
•Paneer maker can be used to get the paneer cubes.
•Do not use old or spoiled milk to prepare the paneer.
•Zero fat or skim milk does not work out well with this method.
•Keep stirring the milk while it's becoming hot to prevent it from getting burnt at the bottom.