Place milk over flamer to simmer. After it simmers once, add cashews, almonds, saffron and nutmeg powder into it and mix well. Reduce the flame to minimum. Cook milk on low flame until milk gets thick and dense in consistency. Moment there is formation of malai on the surface, mix it really well.
Keep repeating this process. Whenever a layer of malai is formed over milk, mix it nicely. With this milk will get thick in consistency.
The quantity is reduced to 1/3 and milk appears to be thick. Now add sugar and cardamom powder in the milk. Mix well and turn off the flame.
Saffron basundi is ready. Store this delicious saffron basundi in refrigerator and relish eating for up to 2 to 3 days.