Mix flour, baking powder, sugar, butter, eggs, milk, and vanilla extract to form a smooth batter.
Preheat oven to 180°C. Bake the batter in a greased pan for 25-30 minutes, until done.
Heat milk, sugar, cardamom powder, and saffron until slightly thickened, then set aside to cool.
Soak rasmalai discs in the cooled rasmalai milk for 5-10 minutes until they become soft.
Slice the cooled cake into layers, then soak each layer with the prepared rasmalai milk.
Add soaked Rasmalai pieces on top of each cake layer, pressing gently for better absorption.
Garnish with chopped pistachios, almonds, and saffron, then chill the cake before serving to set.