Mix the sugar and water together and let it come to a boil.
Let it boil for 3-5 mins in medium flame.
Turn off the flame and let the sugar syrup cool down to room temperature. Now add the rose essence or rose water. I added rose water since that is what I had on hand. If adding the rose water you might have to add about 4 tbsp since it is already diluted. If adding the rose essence just 3 to 4 drops would be sufficient. Always make sure that you use good quality rose essence.
Once the syrup cools down entirely you could store this mixture in the refrigerator for future use.
When ready to make the paneer soda, Add about 4 tbsp of this rose sugar mixture over ice and then add the plain soda to it. Taste the soda and adjust the flavor based on your sugar liking.