Bring the milk to a boil on medium-high heat.
Once the milk is boiling, add the vinegar or lime juice.
Turn the heat down to medium, and stir the milk with a spoon and watch it curdle! The liquid will seperate from the solids, leaving some little chunks and a yellow liquid called whey.
Keep stirring for a couple of minutes, and then set up your draining station:Put your cheesecloth over a fine-meshed strainer, and the strainer on top of a big bowl.Pour the mixture on top of the cheese cloth, and you should end up with the liquid in the big bowl and all the hot cheese curds in the cheesecloth.
You can either keep the whey to add to a smoothie or bread (it's full of protein!) or you can throw it away.
Take the cheesecloth, twist it closed, and try to squeeze as much water out as possible (without burning yourself!).
Finally, take the cheese off of the strainer (keep it in the cheesecloth) and set it on a cutting board. Try to shape it into a rectangle or a square, but no worries if you end up with a weird shape. It really doesn't matter!
Lay the cheesecloth gently on top of the Paneer, and top it with something heavy that will fully cover it (like a pan, a pot, or a pot in a pan with some cans of beans on top.)
Let sit for 20 minutes and you're done!