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Step 1
Add milk to a heavy bottom pan on medium heat.
Step 2
Let the milk come to a boil, stir often so that it doesn’t stick to the bottom of the pan.
Step 3
Once the milk has come to a boil, turn off the heat and start adding vinegar (or lemon juice), little at a time.
Step 4
At one point, the milk will curdle and you will see the whey separate. At that point, stop adding the curdling agent and wait for 5 minutes so that the milk curdles completely.
Step 5
Drain the curdled milk into a muslin cloth. Rinse the paneer with cold water so that the final paneer doesn’t have any taste of vinegar.
Step 6
Bring the ends of muslin cloth together and squeeze as much water as you can.
Step 7
Then flatten the paneer (wrapped inside the muslin cloth) and place it on a flat surface. Then place a heavy object on top for it to set. I placed a plate and then placed mortar & pestle on top. Leave it undisturbed for 1 to 2 hours.
Step 8
Once the paneer is set, remove it carefully from the muslin cloth and cut into cubes. Use paneer in any of your favorite recipes.