Take maida in a bowl, add water and make it into a stiff dough. Cover with 2 cups of water and set aside for 30 mins.
Now use your hands to remove the milk from it. Strain it and discard the gluten.
Now cover the milk with a lid and set aside for 2 hours. Now discard the top clear liquid and use only the milk settled in bottom.
Take maida milk, coconut milk and 1 ¼ cup sugar in a pan and keep mixing till it starts to thickens. Cook it for 10 to 15 mins till it gets little thick.
At this point take ¼ cup sugar in a sauce pan, heat till it gets caramel in colour. Pour this into the halwa and cook and stir for 45 mins to 1 hour.
Now the oil from the coconut milk would have come out.
Cook till it gets nice and thick. Add cashews and mix well.
Spoon this into the greased pan and cool it for 4 to 5 hours.