I have received numerous requests to post the recipe for homemade paneer, so lo and behold! Actually, even though many people find it a daunting task, it is actually a breeze to prepare. And of course, homemade paneer just cannot compare to anything you buy in a store; it is so much creamier and tastes(and is) so much more natural, as opposed to that rubbery taste you find in the store-bought paneer. It is a small effort that is well-worth the time it takes to really elevate the quality of any dish you prepare.
Homemade Paneer (enough for 8 people if making a thick-gravied dish, like paneer makhani):
1/2 gallon whole milk(do not use low-fat or skim)
3-4 tablespoons lemon/lime juice or distilled white vinegar
1 tbsp. all-purpose flour
1/2 tsp. salt
Bring the milk to a boil. As soon as it starts to boil, turn off the heat, and add the lemon juice or vinegar. Stir until the curds completely separate from the whey. Strain the curds, and run them under cold water to keep them soft. Let them drain for about half and hour to get rid of the excess water. Transfer the drained curds to a food processor, and add the flour and salt. Process until the flour is thouroughly incorporated and the mixture is very creamy. Transfer to a lightly oiled work surface, and knead it lightly for a minute or so. Place the paneer on a cheesecloth, and press it into a square about 3/4" thick. Wrap it in the cheesecloth, place a plate on top of it, and place one or two large, heavy cans on top of the plate. Leave it for at least 2-3 hours to firm up. When ready to use, remove the cans, unwrap carefully, and cut the paneer into about 3/4" cubes. The paneer is ready to use in any gravy-based dish.
If you want to make paneer bhurji or anything else that does not require the paneer to be cubed or hold its shape, then you can skip the steps of adding flour and kneading. Just run it under cold water, and let it drain.