In Indian cooking, the term "Paneer" refers to freshly-made cheese curds.
The following is from Julie Sahni's _Classic Indian Cooking_.

Homemade Indian cheese is similar to commercially available pot cheese or
Italian ricotta, except that the curd is much drier. Indian cheese is one
of the primary sources of protein among Buddhists and Jain and Hindu
Brahmins, who follow the principles of nonviolence and adhere to a strict
vegetarian diet. It is used extensively in cooking throughout India, except
in the South were cow's milk is scarce.

Indian cheese in curd form is called "chenna;" when chenna is compressed
into a cake and cut into small rectangular pieces, it is called "paneer."
Chenna is the basis for many of the famous desserts from Bengal, an eastern
region of India. It is used in making the famous dessert Cheese Dumplings in
Pistachio-Flecked Cream Sauce ("Ras Malai"). Paneer is used in the
preparation of many savory dishes, such as Green Peas and Indian Cheese in
Fragrant Tomato Sauce ("Mattar Paneer"). Indian cheese is not available
commercially, but you can easily make it in your own home.

MAKING INDIAN CHEESE: Bring 8 cups of milk to a boil in a deep
heavy-bottomed 3- or 4-quart saucepan or casserole, stirring often to
prevent sticking. Reduce heat and add one of the following starters: 4
tablespoons lemon juice, 3 tablespoons cider vinegar mixed with 3
tablespoons water, or one cup (8 ounces) plain yogurt. (I tend to use lemon
juice more often than the other starters because I have found the curd
produced is much softer and delicate.) Stir gently until the white curd
forms and separates from the greenish-yellow whey (about 10 seconds if you
are using lemon juice or vinegar and 30 seconds to a minute if you are using
plain yogurt). Once the curd begins to form, the contents of the pot should
be stirred very slowly and gently, as though stroking it, so that the
freshly-formed fragile curds do not disintegrate into small pieces. The
curd should be in lumps. Immediately turn off the heat. Pour the cheese and
whey through a colander or large sieve, lined with a thin fabric or four
layers of cheesecloth and placed in the kitchen sink. (If you intend to make
cheese again within 24 hours, save the whey to add to the next batch of
boiling milk instead of using lemon juice, vinegar, or yogurt; cheese made
with whey has a softer curd and a more authentically Indian aroma. This is
what the pastry shops in India use as a starter, day after day.) Hold the
colander or sieve under the tap and let cold water run, at a medium flow,
through the curds in the cheesecloth for 10 seconds -- to wash away whatever
remains of the smell of lemon juice, vinegar, or yogurt. Bring up the four
corners of the cheesecloth and tie them together. Gently twist to extract as
much water as possible, and hang the cheese to drain for 1 1/2 hours (a good
spot is the door handle on a kitchen cabinet directly over the sink).

This drained, crumbly, slightly moist cheese is "chenna." To make the cheese
into cakes ("paneer"), set the cheese -- still in the cheesecloth -- on a
clean flat surface and place a weight (such as a large pot filled with
water) on it for half an hour. Remove the weight, take the compressed cheese
out of the cheesecloth, and place it back on the flat surface. With a sharp
knife cut the cheese into neat rectangles. Paneer keeps well in the
refrigerator for 4 days.

NOTE: Even though exact amounts of lemon juice, vinegar, and yogurt are
specified here, you will sometimes find that the curd forms before all the
starter has been incorporated. If that happens, do not add the full amount
of the starter, as that will only harden the curd. This is a serious matter,
especially in delicate desserts such as Ras Malai, where soft, moist curds
are essential for the dumplings to be soft and fragile.

Or you may find that after you have added the entire suggested amount of
starter, the curd still has not formed or has only partially formed and the
whey remains milky. There is no need for alarm. All it means is that your
starter is not potent enough to do the job. Therefore, add a little more of
the same starter until lumps of snow-white curd separate, leaving behind
clear greenish-yellow whey.


Mattar Paneer

"The flavor and texture of the paneer are of prime importance here. The
cheese should be sweet and fresh-smelling; it should feel firm but not hard
to the touch; it should be moist but not wet; and finally, its texture
should be close and compact, not porous. (If the paneer is dry and too
solid, the cheese pieces will taste hard and rubbery, and the sauce will not
penetrate the paneer, leaving it with a bland taste. If the paneer is too
wet and loose-textured, it will not hold its shape, but will fall apart
while it is being fried, disintegrating into the oil.)"

Paneer made with 8 cups milk and cut into 1/2 by 1/2 by 1 1/2 inch pieces.
12 tablespoons usli ghee, or Indian vegetable shortening, or vegetable oil
2 cups finely chopped onions
1 teaspoon finely chopped garlic
2 tablespoons finely chopped fresh ginger root
2 teaspoons ground coriander
1 teaspoon turmeric
1/4 - 1/2 teaspoon each red and black pepper
1 teaspoon paprika
2 cups finely chopped or puréed fresh ripe tomatoes, or 1 1/2 cups canned
tomatoes with their juices, chopped
1 1/2 cups shelled fresh green peas, or 1 ten-ounce package frozen peas,
defrosted
2 teaspoons kosher salt
2 teaspoons garam masala
4 tablespoons finely chopped cilantro

1. Spread the paneer pieces on a piece of waxed paper and leave them to dry
slightly for 1/2 hour.

2. Heat 3 tablespoons of the ghee over medium heat in a large heavy-bottomed
pan, preferably one with a non-stick interior. When the ghee is hot, add the
cheese pieces. Keep a saucepan lid or spatter screen handy, since the
moisture from the cheese may be released explosively, causing tiny particles
of cheese to fly all over. Dusting the paneer pieces with a little flour can
prevent splattering. Fry the cheese, turning and tossing often to prevent
sticking and burning, until lightly seared (about 5 minutes). Transfer the
pieces to a bowl. (The paneer should be fried in batches so that there is
ample room in the pan for turning them without fear of their breaking.)

3. Add the remaining ghee to the pan, and increase the heat to high. Add
onions, and fry them until they turn light brown (about 5 minutes), stirring
constantly so that they do not burn. Add garlic and ginger, and fry an
additional 2 minutes. Add coriander, turmeric, red and black pepper, and
paprika, all at once. Stir rapidly for a moment, and immediately add the
tomatoes. Cook until the mixture thickens to a pulpy sauce and the fat
begins to separate (about 10 minutes), stirring often.

4. Add 2 1/2 cups hot water and bring the sauce to a boil. Reduce heat to
medium and cook the sauce, covered, for 20 minutes. cool the sauce briefly,
then purée it in an electric blender or food processor, leaving the sauce a
little coarse so that it has a certain texture.

5. Return the sauce to the pan. Add peas, salt, and the fried cheese, along
with 1/2 cup hot water, and bring the sauce to a boil. Reduce heat to
medium and simmer, covered, until the peas are cook through (about 15
minutes for fresh peas and 5 minutes for frozen). Turn off the heat and let
the dish rest, covered, for an hour before serving. When ready to serve,
heat thoroughly. Fold in garam masala and cilantro. Check for salt, and
serve.

NOTE: This dish tastes best if made a couple hours before serving. The
resting allows the flavors to blend and mellow. It may be refrigerated for
up to 3 days without loss of flavor. To reheat, simmer gently over low heat
until warmed through.

BOB'S NOTES:
1. There are people who make this with tofu instead of paneer. It's not bad.
2. I cut the paneer into cubes about 3/4 inches on a side. The dish didn't
see to suffer from that.
3. I used canned whole tomatoes in their juices, and squashed them in my
hand into a bowl to prepare them for incorporation into the sauce.
4. I didn't flour the paneer, but I didn't have any of the problems
mentioned either, even though I was concerned that it might be a little too
porous. Maybe I just got lucky.
5. Before heating the ghee, it's wise to set up a mise en place for the
ingredients you'll be using in steps 2-3.
6. I'm assuming everybody who reads this knows what ghee is. If you don't,
Google for it.
7. This recipe is *very* good on its own, but to make it a little richer and
more fragrant you can add 1/4 cup of heavy cream and a pinch of
freshly-grated nutmeg just before serving.

Bob