Do not over-grind the cashews because they ooze out oil and it becomes paste. We need cashew powder not cashew paste. It's OK if the cashew powder is little grainy.
If you add too much water to sugar, after adding cashew powder the mixture will not thicken and come together as dough.
As you include the cashew powder in to sugar syrup, you can do mixing and breaking the lumps in low flame too. I was extra cautious, so did it off the stove.
As the cashew dough thickens and ready to transfer, do not scrape the edges to include them in to dough.
Properly kneading the dough when it is still warm is very important step to obtain smooth textured kaju katli.
If you cannot knead the dough or dough crumbles, then add some milk. Milk helps in kneading and rolling. But shelf life of kaju katli is reduced.
The whole process took around 25 to 30 minutes for me, which may vary according your pan, temperature etc.
Normal shelf life of kaju katli can be extended to a week at room temperature.