Bring the milk to a boil in a large pot. Add the vinegar, and stir until the mixture separates into solids and liquid. Drain the mixture through cheesecloth set in a large mesh sieve over a bowl. Wrap the ends of the cheesecloth around the curd and put a heavy weight on it such as a cookie jar or rice container. Place the mixture in the refrigerator. Let the water drain completely for at least one hour, or overnight for a firmer paneer. Remove the paneer from the cheesecloth, and use the paneer immediately, or refrigerate in a covered container for up to 5 days.
Recipe courtesy of Bal Arneson