Mix lemon juice in half cup of hot water and keep aside.
Boil the milk in a heavy bottomed pan over medium heat, stirring occasionally, making sure not to burn milk. As the milk comes to a boil, add the lemon juice gradually and stir the milk gently. The curd will start separating from the whey, turn off the heat.
Once the milk fat has separated from the whey, drain the whey using a strainer line with cheesecloth or muslin cloth. Wrap the curd in a muslin cloth, and rince under cold water, and squeeze well. This process takes out the sourness from the lemon.
To take out the excess water squeeze the cloth, or press the wrapped paneer under a heavy pan for about one hour.Taking the right amount of water out of the paneer is the most important part of this recipe.
To check if enough water is out of the paneer, take a little piece of paneer on your palm and rub with your fingers. After rubbing the paneer for about 15-20 seconds, you should be able to make a firm but smooth ball.
Once the paneer is drained, place on a dry, clean surface and knead the paneer for 3-4 minutes until the paneer is almost rolls into smooth soft dough.
Knead the paneer by dragging the palm of your hand hard on the paneer. Keep scooping it back to togather and knead more. If the paneer is too crumbly, add a teaspoon of water. Your palm will be little greasy.