Mix 2 tbsp vinegar with 4 tbsp water and keep it aside.
Pour 1 liter full cream milk in a heavy bottom pan. Bring it to boil on high flame.
Once it comes to a boil, turn the flame to low, keep adding the vinegar mixture, and stir well.
Turn off the flame. The milk curdles and greenish water separates from the curd. Let it sit for few minutes to fully separate from the curd.
Put a strainer over a bowl and a cotton cloth over the strainer. Pour the curdled mixture into it.
Wash it 3-4 times with normal water.
Gather the ends of the cloth and squeeze out the excess water.
Place on top of a flat surface such as over an inverted plate to shape it into a block or a round shape.
Place a weight (such as a rolling board) on top of the paneer and leave it for 1.5 hours to squeeze out any remaining water.
Remove the weight and the cloth. Your soft homemade paneer is ready to use. Make your favorite paneer recipe today with this soft homemade paneer.