Just had a quick look at 4 of my favourite Indian home cooks. They don't seem to care too much about what you put it in, but two things stand out:
1) Boil the milk (preferably whole milk) and stir a few times to prevent it sticking to the bottom of the pan. Once it's boiled, whisk it a few times and then simmer for about 10-15 minutes.
2) Allow to cool to 110-115F before you add 1-2 tsps of natural yoghurt (the starter). The temperature is very important, apparently. Mix well, then leave for about 6-7 hours.In winter, they recommend 2 tsps.
That's all I've got right now, but I'll take another look tomorrow.