Background: Paneer kheer is widely consumed in India to gain health benefits through its compositional characteristics. Carrot is an easily available vegetable and is utilized for various dessert dishes. Therefore, the present study was conducted for the optimization of the process for the development of carrot supplemented paneer kheer. Methods: Four different levels of paneer and three different levels of carrot was used for the formulation of carrot supplemented paneer kheer. i.e., 100:0 (T0), 80:20g (T1), 60:40 (T2) and 40:60 (T3).Optimization was done based on results obtained from physic-chemical analysis and sensory evaluation. CRD was utilized for experimentation and the significance was shown according to the critical difference at the rate of 5%. Results: T1 (80:20) was selected as the optimized product after the analysis. The optimized product contained moisture (45.31%), protein (24.21%), ash (3.42%), pH (6.16) and titratable acidity (0.42%). Overall acceptability in terms of the sensory evaluation was found to be highest for T1 (8.5) then, for T0 (8.3) and T2 (6.61). T3 (5.14) was neither liked nor disliked due to the higher proportion of carrot paste. Conclusion: The composition of T1 was found to have a balanced proximate composition as well as acceptable sensory characteristics; which shows that paneer kheer could be enriched with nutrients of carrot and enhance the palate of the consumers.