Personally I propose retaliatory terrorist attacks, and reverse insurgency against Pakistan, but on a much larger scale. That’s way we can escalate and we will still be way below nuclear conflagration threshold. Pakistan wants to bleed India with a thousand cuts. Pakistan herself is already bleeding. India can kill Pakistan with only 10 cuts in the right places.
If you read between the lines, the west and India really don’t have many ideas on how to deal with Pakistan other than expecting it to disintegrate in the long term. In such a scenario, you could assume that there’s really no point in jacking up terrorist strikes or insurgencies since its already happening; If anything, it could unite the Punjabis, Pathans and the rich Sindhi classes.
That being said I won’t be surprised if there is Indian involvement of some sort in Baluchistan.