For anyone wondering, paneer (also spelled panir and paner) is a fresh, delicate cheese (along the lines of cottage cheese or fresh ricotta) rich in nutrients and made from low fat milk. I have not been there in about a year, but I'd have to think this is the place.
This Northgate-area grocery, a haven for vegetarians, carries a large variety of Indo-Pak and Middle Eastern ingredients, such as halal meats (slaughtered according to strict Islamic guidelines), spices, an extensive bulk section of legumes, grains and rice, exotic produce and an entire cold case filled with sweets including barfee (a penuche-textured sweet made of reduced milk, butter and nuts) and gulab jamun (a round, cakelike pastry that is fried and soaked in a rosewater syrup for several hours), plus a wide array of Indo-Pak newspapers and movies. The shop is fragrant with curry aromas; just being there creates a craving for this robustly spiced food. Yams and taro root sit beside bags of various basmati rices. A dal (the Indian word for bean) section features masoor dal (split red lentils), moong dal (skinned and split mung beans), kala chana (black chick peas), rajma (red kidney beans) and chana dal (split kala chang). Requisite breads abound: naan, lavash, roti and poori. The shop also caters, which is an excellent way to familiarize yourself with these magnificent foods. The owners and staff are cordial, knowledgeable and extremely helpful.
If you cannot find paneer, you can always make it:
1 liter Milk
½ teaspoon citric acid or lemon (juice)
2 tablespoon Water
Dissolve the citric acid in water. Bring milk to boil, stirring continuously. Add the acid solution gradually, while stirring.
When the milk curdles fully, switch off the heat. Cover for 3-4 minutes.
Drain into a muslin cloth. Hold pouch under running water.
Press out excess water. Shape and place cloth under heavy weight required (stone slab) for 2-3 hours before using as required.
PS. I was just in that 'hood and they have paneer in a cold case next to deli counter.