Boil milk in a deep heavy bottom pan on medium-high flame.
When the milk starts boiling and about to spill over immediately pour the diluted curd. Do not pour the curd at once add it gradually till the milk gets curdle and milk solids start floating on top.
You can put lemon juice or vinegar to curdle the milk but I am comfortable with Yogurt.
Put the flame on low and continue heating till it starts curdling and whey gets separated. After 15 -20 sec you will see milk start to separate from the whey.
When the whey becomes in light greenish color then you will find milk has totally separated. At this stage switch off the flame and let the pan sits for few minutes.
Take a big cheesecloth or muslin cloth and place it over a deep container but I have taken a big sieve and place it over a deep container to strain all the whey. The container should be deep to strain all the whey.
Pour milk solids and whey on the cheesecloth/strainer and strain the cheese. No need to rinse the cheese as I have used yogurt to curdle but if you have used lemon juice or vinegar to curdle then rinse the cheese under running water to remove its sourness. Press the cheese with the spoon and keep the cheese remain in a sieve and let the whey drip by itself for 30 minutes to get the right amount of moisture.
If you are using cloth then take the opposite edges of the cloth and bring it to the center, tie together and hang it on tap. Hang it for 30 minutes so that all the whey gets completely strain. Keep the container below the hanging cloth so that all the whey drips in it.
After 30 minutes transfer chena/ cheese to a plate and add 1 ½ tbsp. cornflour, crumble it with hand and with the heels of your palm mash and knead to make it smooth and soft dough. The whole kneading process takes around 7-8 minutes.
Take a nonstick pan and add ¾ cup of milk, sugar. Mix it well and cook on medium flame till sugar gets dissolved.
Put Milkmaid, paneer mixture and mix it well.
Cook on high flame by stirring continuously until mixture comes in the center in lump form.
Once the mixture becomes thick keep it aside to cool down completely.
Now make balls out of the mixture and put the impression of the index finger in the center of the ball.