How to make paneer
http://rebeccmeister.livejournal.com/844687.html

Take some milk, say around a half-gallon. Find a pot large enough for the milk, and lightly oil it so the milk doesn't stick so badly when you heat it. Heat up the milk, over medium-high heat, stirring so it doesn't stick and scorch on the bottom. Once the milk comes to a boil, lower the heat and keep cooking and stirring for one minute. Then remove from heat and add a couple of tablespoons of either citrus juice or vinegar, until the milk begins to curdle. Keep stirring, adding a little more acid as needed if the milk hasn't curdled completely. Don't overdo it, though, or your cheese will taste sour.

Line a colander with some cheesecloth and put it into a bowl (bonus points if it's reusable). Pour the curd mixture through it to strain the curds from the whey. Pick up the corners of the cheesecloth and hold it over the bowl for another minute to drain out some additional whey. Then, put the cheesecloth bundle onto a surface where you can put a bit of weight on it and allow it to drain for another hour or so. Once that's finished, voila! You have a loaf of paneer. Not only that, you also have a bunch of whey. And it's all soooo much cheaper and more delicious than buying paneer at the store.

What do do with the whey (besides some variant on a frothy whey drink [a non-alcoholic original comes from The Healthy Cuisine of India, by Bharti Kirchner]): use it instead of water when making bread, oatmeal, or rice. You'll be sad when it's all gone.