Bring the milk to a boil, stirring constantly. Remove from heat and let it cool for 5 minutes. Mix the water and vinegar together, then add to the milk to curdle it. Once the milk curdles, strain it.

Pour the curdled milk into a muslin or cotton cloth, rinse with water, and squeeze out the excess liquid. Place a heavy object on top and let it sit for 30 minutes.

Shape the mixture into small balls. In a pan, add water and sugar and bring to a boil over high heat. Remove 1 cup of this syrup and chill it in the refrigerator. Once the syrup is boiling, add the balls one at a time, spacing them out.

In another pot, heat a little water. When the syrup in the pan starts to reduce, add some of the hot water. Cover and cook the rasgullas for 20 minutes, checking occasionally and adding more water if needed.