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Mix lemon juice in 1/2 cup hot water and put aside.
Boil the milk in a heavy bottomed pan over medium heat, stirring occasionally, making sure not to burn bottom.
Just as the milk starts to boil, add lemon/water mix gradually and stir gently. You will see the curd will start to separate from the whey. Remove from heat.
Once the milk fat and whey have separated, drain using a stainer lined with cheese cloth.
Wrap and rinse with cold water. This is very important! If you skip rinsing, your paneer will taste like lemons :(
Knead paneer enough to make smooth.
Wrap tightly and press with a heavy pan/pot for 1 hour. Longer for firmer cheese.
Next put into refrigerator and chill until you're ready to fry it.