1) Heat the milk in a deep bottom vessel. Stir the milk continuously to avoid burning of milk.
2) Once the bubbles appear on the sides of the vessel add the yogurt , one spoon at a time or lime juice .
3) Reduce the heat to medium and keep stirring. The milk will turn into curd ( if it does not then add more lime juice or yogurt).
4) Heat the milk till all the curd floats on top and the color of the liquid is pale yellow.
5) When you see this you can be sure that all the milk is turned to paneer. Let it cool for couple of minutes.
6) Then filter the Curd through the muslin cloth. Ideally its let to hang for it to drip all the water.