Begin by grinding the raw cashews into a fine powder using a food processor or blender. Make sure there are no large chunks left.
In a heavy-bottomed pan, combine the sugar and water and bring to a boil. Stir continuously until the sugar dissolves completely.
Add the cashew powder to the sugar syrup and mix well. Keep stirring until the mixture thickens and starts to leave the sides of the pan.
Add the ghee and mix well. Keep stirring until the mixture becomes smooth and glossy.
Remove the pan from the heat and let the mixture cool down for a few minutes.
Grease a flat surface or a tray with some ghee and transfer the cashew mixture onto it. Flatten it out with a rolling pin or a flat spatula until it is about 1/4 inch thick.
Let the Kaju Katli cool down completely and then cut it into diamond-shaped pieces using a sharp knife.
Garnish each piece with a small piece of silver leaf or chopped nuts.