For the Paneer:
Heat milk in a sauce pan and bring it to boil. While you keep stirring, add 1 tbsp of beaten yogurt gradually at a time.
Continue heating until the milk completely curdles and you could see the whey water getting separated completely. Turn off the stove and add ice cubes immediately. We don't want it to cook any further as it would make the paneer hard.
Strain in a colander lined with muslin cloth. Wash it thoroughly with cold water to remove any sour smell or flavour. Squeeze the excess water. Tie the cloth holding the corners and hang it in the sink tap for 1 hour to drain away any excess whey.
Now place the paneer in a flat plate and knead it gently by rubbing it with your fingers and heels of the palm for 8 to 10 mins, until the paneer becomes soft and smooth and leaves out some fat. It should form a dough now.
Start the process for sugar syrup. Take some of the mixture and make small balls without any cracks in it. You should get around 20 mini balls through this. Remember the balls will double in size when cooked, so shape accordingly.
For the Sugar Syrup:
While you are rolling the balls take a heavy saucepan or pressure cooker. Add 5 cups of water, 1 cup sugar and cardamom. Bring it to boil, the sugar should dissolve completely now.
Now add the chenna balls slowly and bring it to a boil. Do not over crowd the vessel or the balls will break. You can instead make it in two batches. Cover the lid and cook for 8 to 10 mins or pressure cook it for 2 whistles on medium high.
Let the rasgullas cool down naturally and refrigerate until the flavoured saffron milk is ready.
For the Saffron Flavoured Milk:
Bring the milk to boil in a saucepan, reduce the heat and keep stirring for a good 15-20 mins until the milk reduces by 1/3rd quantity.
Now add the thick cream, sugar and cardamom. Cook it further 5-10 mins. Add dissolved saffron strands and remove the saucepan from the heat. Let it cool down completely.
For Final Assembling:
Squeeze out any excess sugar syrup from the rasgullas gently. To do that keep it between 2 flat ladles and press it gently. Add it to the above prepared saffron milk. Garnish with Pistachio slivers.
Once the rasmalai is completely cool, refrigerate it and serve chilled with some extra garnish of dry fruits.