Add 1 cup water, 1/2 cup granulated sugar, and 1/4 tsp saffron to a saucepan.

Bring the saffron syrup to a boil, then simmer on low heat for 4 to 5 minutes.

Remove the syrup from the heat and keep it warm while preparing the malai layer.

Whisk 2 1/4 cups milk and 2 1/2 tbsp cornstarch in a small bowl until smooth.

Add 2 cups milk, 2 1/2 tbsp cream, 3 tbsp sweetened condensed milk, and 1/4 tsp ground cardamom to a saucepan.

Cook the milk mixture over medium-low heat, stirring continuously until hot but not boiling.

Whisk the cornstarch slurry into the hot milk mixture.

Cook and stir the malai mixture until thickened enough to coat a spoon.

Stir a pinch of salt and 1/2 tsp rose water into the thickened malai.

Arrange 13 cake rusks in a single layer in the serving dish.

Pour half of the warm saffron syrup evenly over the cake rusks.

Spread half of the prepared malai mixture over the soaked rusks.

Arrange the remaining 13 cake rusks over the malai layer.

Pour the remaining saffron syrup evenly over the second rusk layer.

Spread the remaining malai mixture over the top.

Chop 1/4 cup mixed nuts and scatter them over the dessert with a small pinch of saffron.

Refrigerate the malai cake until thoroughly chilled before serving.