Set the Instant Pot to saute(normal) mode and heat ghee. Add grated dudhi and sauté for a minute. Add half of the low-fat milk. Close Instant Pot with Pressure valve to sealing. Pressure cook for 2 minutes followed by Quick Release (Natural Pressure Release works too).
Set the Instant Pot to Saute(normal) mode. Mix the milk powder in the remaining half cup of milk and add it to the Instant Pot.
Add sugar and cook for 5 minutes stirring frequently until most of the liquids evaporate and the halwa thickens. If the halwa starts to splutter set the Instant Pot to Saute(less) mode and continue to cook for another 5 minutes.
Stir in Vanilla, mix well and turn the Instant Pot off. Halwa will thicken further as it cools down. Garnish with sliced almonds. Enjoy warm or chilled.
Video
Notes
Note - It is normal for the milk proteins to separate after pressure cooking.
To make the dudhi halwa vegan/dairy-free:
replace ghee with neutral cooking oil or vegan butter
substitute low-fat milk with nut milk, like almond milk
use almond meal instead of milk powder
Substitutions
Use ricotta cheese or khoya instead of dry milk powder. Add only half the milk if using this substitute.
Almond flour can also be used instead of non-fat milk powder
Stir in 1-2 drops of plant-based green food color along with the vanilla for a pretty green halwa
For a nut-free dudhi halwa, simply skip the garnish of nuts and the halwa will still be as delicious