Pour milk in a heavy bottomed pan and put on moderate heat. We are using Buffalo's milk.
Keep stirring the milk at intervals to prevent it from sticking to the bottom of the pan and also disallowing the creation of creamy surface (malai) over the top of milk.
Milk will begin to boil after some time.
Bring the heat to lowest.
Mix warm water and vinegar in another small bowl.
Add one big spoon of vinegar water to the milk and stir milk in one direction for couple of seconds.
Likewise add 2nd spoon of vinegar, stir, then 3rd spoon, stir and so on. Keep on adding vinegar mixed water and keep stirring until milk begins to coagulate.
Once milk solids are seen separating, its a sign that milk is coagulated. Stop adding more vinegar mixed water, even if you are left with some vinegar water.
You will find the white milk solids separated from greenish coloured water called whey water. Let it sit for a minute.
In the meantime take a big bowl and put a sieve over it.
Spread a cheese Cloth over the sieve.
Pour the curdled milk over the cheese Cloth so that entire water passes to the bowl and cheese/paneer gets collected in the cheesecloth.
Then pour some clean water all over the paneer so that taste and smell of vinegar goes off.
Gather the edges of cheesecloth and bring them in the centre.
Transfer the sieve to another empty bowl and put some heavy weight over the cheesecloth.
The scenario will be like this : a bowl at the bottom, sieve over the bowl, cheesecloth carrying paneer inside the sieve and a heavy object over the top, pressing the paneer.
Let it be like this for about an hour so that entire water is dropped out of paneer.
Paneer is ready.