Is there any way that we can harden US store bought Cottage Cheese to make Indian Paneer?
Unfortunately, even if you press it, it will tend to crumble. The way the curds form in small curd cottage cheese forms a skin that makes them tend to fall apart. The same thing can happen in making Indian style paneer if you let the curds boil. (At least, I think it is why it happened!)

Probably your best bet is to drain it then make something like vada or kofte (for malai kofte) out of it, mixing in some maida or cooked potato or besan and kneading it into a dough, then forming it into balls or patties. I think it will still be tasty, even though it isn't what you planned for.