Preheat oven to 350 degrees F (175 degrees C). Line a baking sheet with parchment paper.
Combine milk powder and flour in a bowl. Add butter; beat together until creamy and blended. Add just enough milk to make a firm dough. Shape dough into 18 small balls and arrange on the baking sheet.
Bake in the preheated oven until gulab are lightly browned, 12 to 20 minutes.
Combine confectioners' sugar, white sugar, and water in a saucepan over medium heat. Simmer until sugars dissolve and consistency is syrupy, 5 to 10 minutes. Remove from heat.
Transfer gulab to the saucepan; let soak in the warm syrup, at least 10 minutes. Let cool before serving.
