Kheer, a traditional milk product of South‐east Asia, containing cooked rice grains in a creamy sweetened concentrated milk, has no large‐scale production owing to its poor shelf‐life. Shelf‐life was improved by developing a process based on in‐pouch thermal processing employing a rotary retort. Product development included optimisation of rice/milk solids ratio (0.18–0.52) and total milk solids levels (16–26%) to simulate the conventional product in taste, appearance and textural attributes. Various process lethality values (Fo = 12.4–14.8) were examined with regard to product quality. While the thiobarbituric acid value tended to increase (0.073–0.081), the reflectance value (35.3–43.4) declined with increasing Fo. The pH of the product (6.04–6.10) showed a slight tendency to increase with Fo. Sensorily, the product was found to be acceptable for a period of 150 days at 37°C.