Heat milk and bring it to a boil. Squeeze lemon in a bowl and add a dash of water to it.
Slowly add the lemon to the milk. Once the milk splits strain it using a muslin cloth. Dip this muslin cloth in cold water to remove any lemon flavour. Roll the muslin cloth and place it under a heavy object for 10 mins.
Remove the paneer from the muslin cloth. Refrigerate before cutting and using.