Paneer (. [pəniːr]) is a fresh cheese common in Indian cuisine. It is an unaged, acid-set, non-melting farmer cheese or curd cheese made by curdling heated milk with lemon juice, vinegar, or any other food acids.Its crumbly and moist form is called chhena in eastern India and in Bangladesh.t is an unaged, acid-set, non-melting farmer cheese or curd cheese made by curdling heated milk with lemon juice, vinegar, or any other food acids.