Paneer is an Indian cheese. Milk is curdled and the curds are separated and pressed to drain away excess water. Then it is dipped in chilled water to give it that texture.Queso Blanco, Queso Fresco, farmer cheese and dry curd cottage cheese can be used as substitutes, they're almost identical to paneer.
Khoya is basically dried milk, quite similar to Ricotta cheese except that it is made from milk instead of whey. It is made by simmering milk for several hours. Once the water is evaporated, the remaining coagulated solids is Khoya.
Nutmeg as an intoxicant? Never heard of that