Typically the badam is soaked overnight and then peeled in the morning. I generally never remember to soak it in advance and hence I always soak it very hot water for about an hour. What works really well is soaking the almonds in hot water inside a hot case or a thermos. This quickens the process and the badam is ready to peel within half an hour. Also the badam peels with a lot of ease. the skin simply slips out in between the fingers.
Once the badam is soaked, peel the skin and then grind it into a smooth paste using little water.
In a deep thick bottomed pan, cook the ground badam in low heat until the raw smell goes away (about 15 mins).
Now add the sugar and let it come to a boil. The kheer would liquefy once the sugar is added. Let it cook for few more mins (about 10 mins).
Meantime, in a small bowl add some warm milk and dissolve the saffron thread in the milk. Keep this aside to add to the kheer at a later stage.
Once the sugar dissolves, add the boiled milk and mix well. Check for the sugar and add more if needed, depending on your liking. Let it come to a boil.
Simmer and then add the dissolved saffron/milk mixture. Mix well and garnish with nuts of your choice.
I generally do not add any garnish for badam kheer, because I like the smooth texture of the kheer by itself.
Refrigerate the badam kheer for couple of hours and serve chilled.