Temperature controller using pt-1000 sensor

First of all you could take a look at my answer here Is there any other controller than PID Controller? . It kind of deals with the fact of the various controllers out there.

The problem of the best controller to use is something really debatable. The best controller always depends on what you have to control and in most cases the engineer has to design some, based upon the specifications that have been set, and afterwards decide which best fits the particular physical system.

As I understand from your question you only care about the temperature error, which means you only care about the steady state error of the system and you don't care about the time it takes for your system to reach the desired reference temperature. Considering this, you should go for controllers which take care of the steady state error like the PID for example. Even if this control scheme may look simple it can handle situations like the one you are refering to. I don't know your background at control theory which makes it more difficult to answer the question but if you have some basic background you should consider inserting a steady state error specification. Based on what you want I encourage you to add this specification:

$$ |e_{ss}| leq 0.1 $$

However, this requires that you have a mathematical model of your system and then work out the math in order to come up with the controller gains that satisfy the above specification.

To sum up, I believe nobody can tell you that this is the best controller, go on and use it. Generally, you need to test some of those that can achieve great performance regarding the steady state error of your system like PID, lag-compensator, dynamic state feedback and many more. Based on your background you could also go for model predictive control or even adaptive controllers which will certainly achieve great performance. You could start from the PID control scheme and I am sure you can tune the gains in such way to satisfy your requirements. Keep in mind that you can tune the PID gains even if you don't have a mathematical model of the system, a fact which makes it even simpler.

Finally, I would like to point out that the sensor you are using doesn't play such an important role to the selection of the controller. You should consider its characteristics in order to design a noise attenuation filter for example if needed or take care of a potential measurement inaccuracy it may show.