Mix lemon juice in half cup of hot water and put aside.
Boil the milk in a heavy bottomed pan over medium heat, stirring occasionally, making sure not to burn milk.
As the milk comes to a boil, add the lemon juice gradually and stir the milk gently. The curd will start separating from the whey, turn off the heat.
Once the milk fat has separated from the whey, drain the whey using a strainer line with cheesecloth, or muslin cloth.
Wrap the curds in a muslin cloth, rinse under cold water, and squeeze well. This process takes out the sourness from the lemon.
To take out the excess water, press the wrapped paneer under a heavy pan for about 1 hour.