1. Drain the water from the soaked cashew and grind it with some milk to a smooth paste and keep aside.
2. Let the paste be as smooth as possible.
3. Take the saffron strands in a small bowl and add 3-4 spoons of warm milk to it; keep aside for a while.
4. Take the rest of the milk in a heavy bottomed pan and boil on stove.
5. Stir continuously until the quantity is reduced to about 3/4 the original quantity.
6. Add sugar and the cashew paste.
7. Stir continuously while adding the paste so that no lumps are formed.
8. You can add more sugar if needed as per your taste.
9. Boil on low heat until the required consistency is obtained.
10. Note: Let the consistency be a little thinner than what you actually desire. The kheer will thicken as it cools down.
11. Pour into individual serving bowls.
12. Pour the saffron milk and strands over it.
13. Garnish with chopped almond/cashew pieces and serve hot.

Courtesy: http://maneadige.blogspot.com/