Chop the meat, fat, cayenne, fennel, ginger, coriander and 1 tsp. garam masala in a food processor. Keep chopping, adding a little yogurt and ghee, until the meat is a smooth paste.
Form into balls 1.5-2 inches in diameter.
Heat remaining ghee in a pan. Add sugar, khoya, yogurt, garam masala, and salt to taste. Pour in the milk, add the koftas, and simmer until the liquid evaporates and the koftas are very tender.