Take the milk in a large pan and turn the heat on medium high. With a spatula stir occasionally so the milk doesn’t stick to the bottom. Bring it to a boil and then turn the heat off. Mix 2 tbsp vinegar with 2 tbsp water and pour it slowly in to the milk. It will start curdling immediately. Stir softly. Soon the solid will separate from the whey. The whey should be clear yellowish / greenish (I still don’t know what the name of this color is) and not milky. Now place a colander into the sink and lay the cotton cloth on the colander. Pour the paneer on the cloth and drain the whey (you can also saved it to use later in soup etc.). Wash the paneer with cold water and squeeze it. Now, in a flat surface place the paneer along with the cloth under it and try to give it some shape, preferably a cuboid with 1/2 inch height. Use the ends of the cloth to cover up the paneer. Time to find some heavy object like a cast iron pan or a gallon of water and place it on top of the paneer! Let it be for an hour. Then remove the heavy object and remove the paneer from the cloth. You will see a nice chunk of paneer.