I make my own paneer in small quantities (enough for me for 3 or 4 days). I heat 1 litre of whole milk (pasteurised but not UHT) in a large saucepan on a high heat. As soon as the milk starts to rise in the pan, I take it off the heat and add 1 to 1 1/2 tablespoons of white vinegar, return to a medium heat and spoon off the curds as they form into a cheesecloth strainer over a large bowl to collect the whey. When the curds are removed from the pan, I add another squeeze of white vinegar and bring to the boil again, which usually produces some more curds. I then pour through it the whey left in the pan. The curds are then wrapped in the cheesecloth and filtered water is poured over it (I tie the cloth to one of my taps so the water drains straight down the sink!). Let it drain for about 20 minutes, then place the wrapped curds on a worktop. Place a heavy weight on top of the wrapped curds and leave for at least 45 minutes. Unwrap, place in a container and store in the fridge. I have used lemon juice instead of white vinegar, which seems to produce a slightly softer cheese.
As the paneer has a rather bland taste, I drizzle olive oil over it and sprinkle chopped red or green peppers on it and serve with a large chunk of homemade bread. I also use the paneer in sandwiches with a couple of spoonfuls of nice, tangy pickle.
The whey will keep nicely in the fridge, and I use it in bread- or pancake-making.