Clean and wash water chestnuts to get rid of dirt and mud.
Peel off the skin and wash again.
Chop the chestnuts into small chunks. Add the food colour to the water chestnut and mix well. Keep this aside for 20 minutes.
Now mix the tapioca flour in the chestnuts and mix well until the flour coats and covers all the sides of the chestnuts.
Meanwhile pour water in a pan and bring it to boil. Add pandan leaves and cook for some more time until the leaves release the fragrance.
Add the Agar-Agar, sugar and cook till all the strands mix together with water and no strands are visible.
Bring the milk to boil in another pan or pot.
Add the Agar-Agar mixture into the boiling milk and cook for few more minutes until everything blends together. Keep this aside to cool down.
Now bring to boil the water in a big pan or pot. Add 2 tsp of sugar into it. When you see bubbles, add the chestnuts and mix them frequently to avoid sticking together.
Cook till the chestnuts float on top of the water. Strain the excess water.
Take cold water in a bowl and add the chestnuts. Keep aside.
When the milk is warm enough to handle, pour this into a glass bowl or cup until it reaches half.
Keep this in the refrigerator for 10 minutes to set.
Now, place the chestnuts above the milk mixture in the cup. Pour the remaining milk and keep this in the refrigerator for 30 minutes.
Serve chilled.