Kaju literally means cashew nuts and barfi is a type of Indian sweet, usually in a lozenge shape. Barfi is often but not always, made by thickening milk with sugar and other ingredients (dry fruits and mild spices). ... Kaju barfi is one of the more expensive Indian sweets when compared to other barfis. The pieces are usually decorated with edible silver foil. The finished sweet is usually white or yellow in color depending on the ingredients used for the paste and the proportions of each used. Katli is traditionally eaten during Diwali.Kaju katli can also be prepared by replacing the sugar syrup with crystallized sugar and heating the entire dough instead of the sugar-water syrup.