You know acceptability of some foods is good when it is the desired form. Paneer is one of such examples.I do not know what is your objective or how much moisture would you like to reduce? Do you want dehydrated or IMF?
Drying of paneer is tricky as you have to understand the drying mechanism well. It becomes rubbery if you follow fast drying. Well, FD is one of the best choice. Removal of the yellow pigment, you can use some bleaching agent of KMS before the drying operation.
The artesanal way: Must be allowed to mature in a kind of closet in a process of some days (10 or 15) with the doors close, every 4 days you need to see how are madureting.