Paneer is a fresh cheese that is made by mixing dairy milk with an acid (like lemon juice or vinegar), then pressing the curds together. Paneer is mild-tasting and doesn't melt when heated. It is commonly used in Indian cooking, and its mild flavor doesn't compete with the more flavorful sauces and curries that it's commonly added to. Because paneer is made from milk, it is considered to be vegetarian, not vegan.