Always use best quality milk ,use full fat cream milk for creamy soft paneer .
You can use curd or vinegar as well to curdle the milk.
Once you see the milk starts to curdle switch the flame off if you keep cooking the paneer will turn hard.
But make sure the milk has completely curdled before switching the flame off.
Do not remove the cream layer that comes on the top of the milk .
Use the whey to knead chapati dough .
If you don't want to hang the muslin cloth just tie a tight knot and keep a heavy weight on the paneer once the whey has drained off completely.