Rhonda, paneer is really just a basic homemade cheese, like ricotta is. We're fortunate to have access to a large Indian culture and all their foods, and the local natural food store carries blocks of paneer. Like tofu it doesn't have much flavor of its own, and I basically use it like extra-firm tofu - add seasoning and cook. It's lovely fried in butter or olive oil or duck fat (what isn't, right?), and also great cubed and cooked in sauce.
The lack of cheese is the biggest problem with Paleo, IMO. The lack of coffee and a nice glass of Chardonnay are a close second. I think I'd do pretty well, otherwise.