I followed the tip from the lovely ladies at Show me the Curry and kneaded my paneer in the food processor. I pulsed for about 1 minute and the paneer came out just perfect, soft & smooth.
Roll paneer between both the palms to make the balls and make sure they are as smooth as they can be with no cracks. Keep aside.
In a pressure cooker, take 5 cups water and 1 cup sugar; stir until sugar dissolves. Slowly drop the paneer balls and let them cook for 1 whistle. Turn off the heat and exactly after 5 minutes, set the cooker in the sink and pour cold tap water to cool the cooker.
When cool enough to handle, remove the now puffed up paneer balls into a container along with some sugar syrup. Let cool.