Ensure all the ingredients are at room temperature when you start.
Preheat the oven to 350F/ 180C. Take a baking pan (I used a 9-inch round pan) and grease it all over including the sides. I line the bottom with parchment paper as well.
In a bowl, sieve together the flour, baking powder and salt. Mix in the cardamom powder and the thandai powder.
Take a large mixing bowl and add the butter and sugar. Beat this well using a hand mixer for about 2 minutes until creamy. Add in the grated khoya and condensed milk and whisk for another 2 minutes.
Add the eggs, one by one, and whisk until well incorporated.
Now add the dry flour mixture in two batches and whisk on medium speed again.
Add the milk and the soaked saffron milk mixture and beat well till everything gets mixed well. Make sure to not over-beat/mix.
If adding nuts, fold in the roughly chopped/ sliced nuts now using a spatula.
Pour the batter into the cake pan and make sure the top is evenly spread.
Optional - spread any extra nuts on top of the batter.
Bake the mawa cake in the oven for about 30-35 minutes until it is done or a toothoick when inserted in the center comes out clean.
When the cake has baked, remove from the oven and place the pan on a wire rack for 15 minutes. Gently unmould and let it cool completely on the wire rack before slicing.