The terrorists should first down arms and surrender themselves to the legitimate authorities. After this the GoI may consider reducing the number of peacekeeping forces.
Also Mirwaiz, who claims to be the spiritual leader of Kashmiri muslims (though I doubt if his form of Islam is considered legit by the Saudis!) fails to mention any plans for restoring the properties of the Kashmiri Hindus, who have been living as internally displaced people since his followers terrorised them into leaving their homes.
Mirwaiz should migrate to the Northern Areas to look after the spiritual and temporal well-being of his followers there - according to the Human Rights Watch report ( http://hrw.org/english/docs/2006/09/15/pakist14199.htm ) titled "Pakistan: %u2018Free Kashmir%u2019 Far From Free - Government Opponents Face Torture, Censorship and Political Repression" his people are being oppressed there, especially by the Sunni Punjabis.