Boil the milk in a thick-bottomed vessel on medium heat, stirring occasionally (sometimes milk stick to the bottom and burns, so take caution). Once the milk starts to boil, reduce the heat and add the limejuice, stirring continuously.
In few minutes, you see small curds like white clouds floating on top. Wait till they get bigger (if they don´t, add some more lime juice and stir) and the whey below gets less milky. This process takes few minutes, so wait at least five minutes. Switch off the heat and let it stand for few more minutes. Then pour the whole thing immediately into a clean muslin or cheese cloth in a sieve, over a sink. Gather the curds and discard the whey.
Keep the curds in the cloth, tie a knot much above their level and hang it over a kitchen sink. Let the whey drip for half an hour. Now remove the knot, twist the cloth several times to make it tighten, squeeze out any remaining whey, make a tight knot just above the paneer, shaping the paneer into a round ball. Keep it hanging for another 30 minutes.Remove the paneer from the cloth. Now with the all the whey gone, it turns out into a firm ball. Store this in the refrigerator, 2 to 3 hours, for further solidification. After that, you can use the delightful paneer in curries or just plain fried, as you wish.