The present invention relates in general to processes for the recovery of whey protein as paneer from whey and more particularly to a process for enhancement in the yield of cottage cheese (paneer) by re-circulation of concentrated whey. It is a closed loop process in which whey, which is produced by coagulation of milk, is again concentrated and re-processed to produce cottage cheese (paneer). This process also substantially mitigates environmental pollution, by recycling whey which is otherwise dumped in the drains or water bodies.