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Bring milk to boil and add salt. Remove from heat and add yogurt into it. Stir gently until all the milk curdles. Strain the curdled milk in a thin muslin cloth. Squeeze gently until all the liquid is gone. You now have paneer.
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Put the paneer in a large bowl and knead with the palms of your hand until it becomes smooth and soft.
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Add the flour and bicarbonate of soda and knead a few more minutes. Roll and shape into small balls, the size of a ping-pong ball.
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Dissolve the sugar in the water over gentle heat. Set aside half the syrup.
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Bring the other half to boil and gently slip in the balls of paneer. Simmer for 10 minutes and then raise the heat, adding a little water to thin the syrup if necessary. The rasgullas are done when the float to the surface.
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Drain and put them in the syrup that was set aside.
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Sprinkle with rose water.
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Serve cold.