Combine the milk, sugar, and ghee in a large, heavy-bottomed saucepan. Place the saucepan over medium heat and stir until the sugar has dissolved.

Bring the mixture to a boil, then reduce the heat to medium-low and simmer for 10-12 minutes, or until the mixture has thickened slightly and reduced by about half.

Add the ground cardamom, saffron threads with their soaking liquid, and any optional flavorings (such as rose water or kewra essence) to the mixture. Stir well to combine.

Continue simmering the mixture for another 10-12 minutes, or until it has thickened to your liking. Stir frequently to prevent the mixture from burning or sticking to the bottom of the saucepan.

Remove the saucepan from the heat and let the mixture cool slightly. This will help it to set and make it easier to shape into peda.

Once the mixture has cooled, use a spoon or small ice cream scoop to portion it out into small balls, about 1 inch (2.5 cm) in diameter. You should end up with around 12 peda.