Wash the rice 2-3 times in running water and soak them in 1.5 cup of water. Keep near.
In a heavy pot with lid, add the ghee and let it heat up. Make sure that the ghee is not too hot or smoky. Temper with all the whole spices - cardamom, peppercorns, cloves, bay leaf and cumin seeds. Saute for 30 seconds and add the green chilies and cashews.
Fry the cashews for a minute or so till they are pale brown and then add the onions. Cook onions for 3-4 minutes til they soften a bit but aren't not browned.
Lower the heat to low and add the yogurt to the pot. Immediately whisk for a minute or so else the yogurt will curdle. Add sugar and salt and cook the yogurt masala for about 2 minutes till you see small bubbles of fat appearing but don't cook for too long.
Add the soaked rice along with water to the pot, stir to combine everything. Taste and adjust the salt of the water to make sure that its sharp salty, this ensures that rice will be well seasoned.
Bring to a boil, cover and turn the stove to low for about 12-14 minutes for rice to cook and absorb the flavors. While the rice cooks, you can proceed to make the paneer kofta (recipe below).
Onde95 percent of the water is aborbed, open the lid of the pot and drizzle the soaked saffron. Don't mix. Immediately cover and let the rice cook completely for another 5 minutes.
Take off stove and let the rice sit undisturbed for about 15 minutes. Fluff with a fork, plate and decorated with warm paneer kofta, fried onions, extra nuts, fresh herbs etc. Serve.