Heat milk in a pan. Bring it to boil. Stir in between so that the milk does not get stick at the bottom of the pan.
Take curd in a bowl and whisk it till smooth.
The milk is boiling. Lower the heat.
Add the smoothen curd to the milk. Stir the milk. It will start curdling.
After a five minutes, it will be curdled fully and greenish water will be separated.
Strain the curdled milk in the strainer kept in a bowl. You can put a soft cloth in the strainer and strain the curdled milk.( I have directly strained in the strainer).
The greenish water will be collected in the bowl. It is known as "whey". It is very healthy and nutritious. Utilise it to make buttermilk, kneading dough, making soup, dal or kadhi, making khandvi.
The curdled mixture will be collected in the strainer. Put the strainer in another bowl and cover it and keep aside for 30 minutes so that the excess water will be removed. (if you want to make a block then put the curdled mixture in soft cloth, squeeze it to remove excess water and then shape it in a rectangle and put a heavy weight over it for a couple of hours. I use it while making paneer with lemon juice.)
After 3o minutes, remove the set paneer from the strainer, cut it into pieces and use as required. The paneer made with curd is too soft. Immerse it in a bowl of fresh water and refrigerate to store, Keep changing water after every 8 hours to retain the freshness. The paneer can stay fresh for 3-4 days.