Method:

1. In a deep bottom pan mix milk, powdered milk and 1/4 cup sugar. Bring to boil.
2. In another small pan add 1/4 cup sugar. Melt them until caramelized. Bring it to boil until it turns into nice golden color. It is easily get burnt so be careful. When caramelized, quickly pour in the boiling milk mixture.
3. Reduce milk to 1/2 of its original quantity. Check for the sweetness, if requires add more.
4. Take off from the heat and let it cool slightly until lukewarm.
5. Whisk yogurt and add to the lukewarm milk and whisk thoroughly until see the bubbles like picture.
6. Pour the mixture into a pot, cover it and keep in a warm place. You can keep it near gas stove or in a preheated oven for 7-8 hours, may be overnight to set, so that you can enjoy it next day.
7. Once set, refrigerate and serve the chilled mishti doi as a dessert.

Step by Step Picture:

step 1

step2

step 3