Boil milk in a heavy bottomed saucepan. Keep stirring the milk at regular intervals as milk tend to stick and burn to the bottom.
As the milk is about to boil add finely diced coriander leaves and chilli flakes. Once boiled lower the heat and stir in the yoghurt.
In about 2-3 minutes the curds will coagulate and separate from the watery whey. Add more yoghurt if necessary, keep on heat for about 4 minutes. Remove from heat.
Line a large sieve with muslin or cheesecloth and sit over a large saucepan and drain the mixture.
Once the whey is drained out wrap the curds up in the cloth to form a square. Place under a heavy object such as a steel basin full of water.
Leave it in this position for about 2 hours. Rotating the sides every 30 minutes. Now your soft and succulent cheese is ready to use.
Paneer is mild Indian cheese usually made from fresh whole milk. It is the curds from 'curds and whey'. It is an un-aged, non-melting cheese with a firm texture that can withstand prolonged cooking times and still have the ability to retain its shape and texture.