Heat milk in a large pot on between medium and medium-high heat to 195 degrees F to 205 degrees F (90 to 9 degrees C) until milk is almost simmering. Reduce heat to low, and stir in yogurt and 3 tablespoons lemon juice. Stir for about 30 seconds, and if milk isn’t separating into curds and whey, stir in another 1 to 2 tablespoons lemon juice.
Once curds form, turn off heat, and pour in cold water to stop the cooking process and cool mixture. Pour curds into a cheesecloth or a cotton towel lined colander and drain out whey. Whey can be reserved for other uses.
Let curds sit and drain for 5 to 10 minutes, before gathering up the cloth, and squeezing out excess liquid. Be careful to not burn yourself, as the liquid may still be very hot. Press curds between layers of cloth into a disc of about 2 inches high, being careful not to leave excess cloth bunched up on top, or underneath the cheese. Place something flat over the cheese, and place a heavy pan on top to weigh down. Leave paneer under the weight until very firm to the touch, 30 to 90 minutes. Wrap and refrigerate until well chilled before using.
For the chili garlic marinade combine garlic, Scriracha, yogurt. lemon juice, garam masala, and kosher salt in a bowl; mix until well combined.
Cut paneer into squares or rectangles about 1/4 to 1/2 inch thick, and add to the marinade, tossing well to coat thoroughly on both sides. Wrap and marinate paneer for at least 4 hours.
Combine yogurt, cilantro, jalapeno, lime juice, and salt for the yogurt dipping sauce in a blender; blend until smooth.
Melt butter in a non-stick pan over medium-high heat and pan-fry paneer until well browned, about 2 minutes per side. Serve immediately with dipping sauce.
