How to Make Paneer(Fresh Indian Cottage Cheese)

This recipe can be halved,doubled or tripled. Please use this recipe as a basic guideline to make paneer. 
The timings mentioned in the recipe will differ on stove settings and milk/cream quality.

Ingredients (Makes about 8oz block of paneer)

1/2 gallon whole milk
1/2 cup heavy cream
1/4 cup distilled white vinegar (this quantity of vinegar can go up to 1/3 cup)

Other things that you will need :-

A heavy bottomed pot to boil the milk& cream
A wooden spoon or plastic spatula to stir the milk while boiling
Cheesecloth/muslin (large enough so that it can be tied up)
Soup Strainer/Colander
A bowl to collect the whey (which is extremely nutritious and can be used to knead doughs or as stock).
Few rubber bands or string to tie the cheesecloth

Method

Line the strainer with double layer of cheesecloth/muslin. 
Set it over the bowl to catch the whey such that there is gap between the bottom of strainer and the bowl. 
Keep rubber bands or string nearby. 
I recommend setting this up near your sink so that once you have strained the curds you can hang the cheesecloth on the tap.

Add milk to the pot. Let the milk warm up on medium heat for about 5-6 minutes. 
Once the milk is warm, add the heavy cream to the pot and bring the whole mixture to a boil. 
This will take 12-15 minutes on medium heat, you will need to intermittently stir the mixture so that it does not stick to the bottom of the pot. 
Keep a close eye because the milk can boil very quickly.

Once the milk has boiled, put off the heat. Wait for 3-5 minutes. 
Add 1/4 cup of white vinegar to the boiled milk. 
Immediately you will see that the milk starts to coagulate and a greenish liquid separating (this is whey). 
This green liquid will be clear, if it's still whitish, you might need to add more vinegar. 
Add vinegar 1 tbsp at a time till you see clear green liquid.

Pour the curdled milk over the strainer lined with cheesecloth. The whey will collect in the bowl. 
Tie up the ends of the cheesecloth and fasten with the help of rubber band/string. 
Hang this for maximum 5-7 minutes so that the liquid drains away. 
Stop as soon as the water stops dripping in a continuous string. 
At this point use you hands to squeeze the cheesecloth bundle a little bit.Don't apply too much pressure. 

Place the cheesecloth on a plate and keep another plate on top of it to flatten down to a block. 
Next keep a heavy weight on top of it. I fill up my 3 quart stainless tea kettle with water and use it to weigh down. 
You could use tomato/bean cans. Keep the curds weighed down for at least 30-45 minutes at room temperature. 
Drain the liquid that has collected in the plate and unwrap the cheesecloth to take out the block.

Carefully, keep the paneer block in refrigerator for at least 24 hours before cutting through
I find that it much better if I wait up to 36 hours to cut a piece.

Store paneer refrigerated for 4-5 days. It could be frozen for up to 2 weeks.

Few other tips & suggestions-

Be sure not to add the vinegar when the milk is boiling and do not heat the milk once you have added it, else the curds will become rubbery. 
(see recipe for when to add vinegar)
Do not let too much water drain from the curdled milk once you have tied it up in the cheese cloth else your paneer will be dry and the curds will never pull 
together to form a block.
It is better to cut paneer when the block is cold. Use a sharp knife. 
I recommend storing the paneer block in little bit of water (like we store fresh mozzarella) in the refrigerator. Cut out pieces as you need.
You could skip addition of heavy cream in this recipe but it does make a difference in the softness.