Heat 1/2 litre of pre-boiled and cooled milk in a pot. Let it come to a good boil. Once boiling, reduce the flame to low.

Grate 200 grams of paneer using a fine grater. Add the grated paneer to the boiling milk. Increase the flame to medium and cook for 5-7 minutes, stirring occasionally, until the paneer is well incorporated and the mixture thickens.

Lower the flame to low to prevent the milk from overflowing. Add sugar according to your taste. Stir well to dissolve the sugar. Continue to cook for another 5-7 minutes after adding sugar, stirring continuously as the mixture tends to rise. The kheer will thicken further and reduce by about half.

Add freshly crushed cardamom and nutmeg powder. Add grated or finely chopped almonds, cashews, and pistachios. Optionally, add a few saffron strands for colour and enhanced flavour.

Bring the kheer to a final boil after adding all the ingredients. Cook for another 5-7 minutes, stirring occasionally.

The kheer is ready when it reaches a thick, creamy consistency. It will thicken even more as it cools. You can serve it chilled or warm.