Put 1 1/2 cups of sugar and water to boil.
In another pan put the milk & 1 cup sugar to boil.
Make balls from paneer and flatten to make patties (1" diameter) and gently let into the boiling water.
Cover with a perforated or partially covered lid.
Boil for 12-15 minutes.
On touch the rasmalai should spring back, to be done.
Boil milk to 2/3, add cardamom, sliced nuts and saffron, well dissolved.
Gently remove each rasmalai, drain water and transfer to milk.
Allow to boil further 2-3 minutes.
Remove from fire, cool to room temperature.
Chill for 3-4 hours before serving.