I made paneer last night and it was suprisingly easy.
Heres the recipe:

2 litres of milk
4 tsp lemon juice

Bring the milk to the boil -watch it 'cos it creeps up fast

Add the lemon juice (or vinegar) and stir for around 3 minutes until the milk curdles (til it looks like cottage cheese)

Strain liquid through a tea towel and put pressure on the curds (i,e; hang for thirty minutes), then put under a heavy weight for around an hour -to make sure you get all the liquid out of paneer.

Then either fry or refrigerate. Yum.