Take a pan and add water in it.
Then add milk powder, but little at a time.
Whisk until there remains no lumps.
Likewise add the entire milk powder while whisking to prevent the formation of lumps.
Put the pan on heat.
Give it a boil. Do whisk at intervals to prevent the milk powder sitting at the bottom of the pan.
Remove the pan from the heat and leave aside to down the temperature. Milk should come to lukewarm which you can check by putting finger.
Transfer the milk in a pot in which you want to set the curd. Clay/earthen pot is the best to set the curd but you can also use ceramic, glass or stainless steel container with a lid. But don't use plastic and aluminium.
Add a tsp of curd and mix.
Put a lid or cloth or both and place the pot at some warm and undisturbed place in the kitchen for overnight or for 7-8 hours.
And the curd/yogurt is ready.
Use the way you like or place in refrigerator.