Wow, how did this whole thread flew under my radar? I am the other Haifa guy here... born and raised but living in NYC now. I make Labaneh on regular basis from both Cows' and Goats' milk. I start by making the yogurt. Almost boil milk, cool it down rapidly in a second bowl of ice water to 115F, then add culture. I found yogurt cultures that are quite sour and give you good gelling. I sometime just copy a yogurt that I like by putting a tablespoon of it into the milk instead of purchased culture - works as long as its pure and has no additives. I incubate 6 hours in a yogurt maker, but you can simply use a Thermos. I then drain the whey for 24 hours in fine mesh strainer over a bowl in the refrigerator, turning this into Greek-style yogurt. I add LITTLE sea salt half way through this (enough salt to help extract more whey but not enough to kill the proactive bacterias - we still need them alive. Do not use iodized salt). I then take it out in cheesecloth and leave it out in approx 65F for a day. The longer I do, the thicker and more sour it is. I found that non-homogenized milk makes much better and firmer yogurt and need no additives such as CalCl or Milk Powder.
If you sabras are into making yogurt, you will love this one; I now take Halva (the stringy type) and mix it in yogurt. it melts right into it giving you a great Halva flavored yogurt. Last time I made too much so I stuck it in my Ice Cream maker and got frozen Halva yogurt to die for. Try it!