When I made this, I actually went through the whole process of making the paneer from scratch. You need quite a bit of milk to yield the amount needed for this recipe, but the recipe is very simple and also kind of rewarding to make. Maybe it's because I never made cheese from scratch before, but I couldn't get over the fact that I was making cheese. It's just such a "gourmet" thing to do. Making paneer from scratch is time-consuming though, so I decided to just adjust this recipe to a one step ricotta paneer I learned about from my friend's mother. But if you want the experience of making your own paneer for rasmalai, here is a link to get you started.
For those doing low-carb, rasmalai using Splenda as a sweetener comes to 6.6 grams of carbs per serving.