In a large, heavy-bottomed pot, heat the milk over medium heat. Stir occasionally to prevent scalding.
As the milk heats, dilute the vinegar in 2 tablespoons of warm water.
Monitor the milk and continue to heat until it reaches 190 F. Small bubbles should start to form around the edges and steam should emanate from the pot.
Slowly pour the diluted vinegar into the milk while gently stirring.
Continue to stir just until curds start to form, about 1 minute. Turn off the heat.
Let the pot sit undisturbed and allow the curds to form for another 5 minutes, or until the whey has gone from opaque to a more translucent, greenish-yellow.
Line a colander with cheesecloth and set it over a large bowl.
Strain the curds into the cheesecloth-lined colander. Reserve the whey for another use or discard it.
Loosely bundle the strained curds in the cheesecloth and rinse them in a bowl of cold water. Wring out the excess water.
Fold the salt into the curds.
Form the cheesecloth bundle into a disk and place it on a plate lined with paper towels.
Set another plate on top of the bundle and weigh it down to press the curds.
Let sit at room temperature for 15 minutes (for a soft texture) to 2 hours (for sliceable and sear-friendly pieces). Paneer can be pressed for longer in the refrigerator for a very firm final product suitable for grating.
Store paneer in the refrigerator in an airtight container; use within 3 days. Crumble, cube, or grate based on desired use.