- First grate paneer and set aside. To a sauce pan add milk.Use only full cream milk. Boil milk and simmer. Simmer until it reduces to almost half. Now add sugar. Add saffron strands. Mix it well, Again simmer for few more mins. Add grated paneer. Mix well cook for 2-3 mins. Kheer becomes thick and creamy. Add cardamom powder and nuts. Mix well and switch off. Serve chilled or warm.