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1
Pour one gallon of milk into a large pot and bring to a boil over medium heat (watch carefully, as it will boil over almost as soon as it starts to boil).
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2
Once the milk begins to boil, pour the buttermilk into the pot in a steady stream while stirring constantly (the mixture will separate into curds and water).
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3
Place a cheesecloth into a colander, and pour the milk mixture through it, reserving some of the liquid for later.
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4
Let the curds sit in the colander for two or three hours, or until it has drained completely.
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5
Transfer the dry curds to a food processor and process until smooth (it should be able to form a ball if it is the right consistency).
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6
If it is too dry, add a little of the reserved liquid and process again; the consistency should be like a firm ricotta cheese.
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7
Turn the cheese out onto a clean surface, and knead until smooth.
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8
Form into a ball, and wrap in plastic and refrigerate until needed.
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9
To cook the paneer, heat the oil in a large heavy skillet over medium-high heat.
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10
Cut the paneer into bite size pieces and fry for about 1 minute, or until a very pale golden brown.
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11
Drain on paper towels and add to your favorite curry or dish.