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Heat milk in a large saucepan over medium-high heat, stirring frequently, until it is steaming, barely bubbling and registers 180°F on an instant-read or candy thermometer. (Do not leave it unattended—it can boil over very quickly.)
Carefully pour the milk into a clean, heat-safe 5- to 8-cup container. Let stand, stirring frequently, until cooled to 110°F. Combine yogurt with ½ cup of the 110°F milk in a small bowl, then stir the mixture back into the warm milk.
Cover the container and wrap it in a clean kitchen towel to help keep it warm. Place in a very warm place and let stand, undisturbed, until thickened and tangy, at least 8 hours and up to 12 hours. Refrigerate until cold, about 2 hours. The yogurt will thicken a bit more in the refrigerator.
Line a large fine-mesh sieve with 2 layers of cheesecloth and place over a large bowl. Spoon the cooled yogurt into the cheesecloth, then cover and refrigerate for 8 to 24 hours, depending on how thick you want it.