Combine hot water and saffron in a small bowl; let sit until water turns yellow.
Fill a large pot with lightly salted water and bring to a rolling boil. Stir in the fettuccine, bring back to a boil, and cook pasta over medium heat until cooked through but still firm to the bite, about 8 minutes. Drain.
Heat butter in a skillet over medium heat; add cream and bring to a boil. Reduce heat to medium-low and mix Parmesan cheese, salt, pepper, and paprika into cream mixture; simmer for 1 minute.
Mix saffron water, paneer, olives, and raisins into cream sauce and simmer until sauce is thickened, about 1 minute. Add fettuccine to sauce and toss to coat; simmer for 5 minutes.
