Boil 1 litre milk in a pan and keep stirring.
When it start boiling switch off the flame and wait for 2-3 minutes.
Now add 2 tsp of lemon juice (or 1 tsp of vinegar)and stir.
Now the milk will start curdling.
Strain the curdled milk through a muslin cloth.
Pour some cold water over the milk to remove the traces of lemon juice and to cool it down.
Tie the muslin bag and put some weight over it to remove the extra water from the milk solids (but don’t make it too dry,there should be some moisture in it).
Keep it for 20 minutes and then open and remove the paneer from the muslin cloth.