Preferably refrigerate the home made paneer for a few hours or even a day.
Knead the paneer using food processor by applying intermittent pulses for about a minute. The paneer will become soft and will be like a soft dough ball.
Remove the paneer from food processor and make a smooth ball by rolling in your palms.
Make about 10 balls, about 11-12 gms each or around an inch in diameter.
Pour sugar, water and paneer balls in the instant pot and cook on high pressure for 12 minutes in sealing position.
Let the pressure release naturally and then open the instant pot lid.
Transfer the rasgullas in a bowl along with little syrup.
If additional paneer is there then make additional balls and drop in the instant pot in the same sugar syrup.
Cook on high pressure for 12 minutes in sealing position followed by NPR.
Transfer all rasgullas and sugar syrup in the bowl.
Let it cool down and then refrigerate.
Notes
To make paneer for Rasgullas 2 percent milk is preferred (do not use ultra-pasteurized milk)
While making paneer, do not use fresh lime juice as the fiber strands from limes might stay in the paneer even after rinsing.
Squeeze out water from the paneer by wrapping it in a cheesecloth and applying weight for about 2 hours. After that you can refrigerate for a day to help making it firm.
Paneer must have some moisture else the rasgullas can turn out rubbery and chewy.
I use organic cane sugar so the rasgullas are off white in color, using white sugar will result in white rasgullas.