Considering what has happened up until now:
1. India has clearly not been deterred, the reason it is still using drones.
2. IAF is another story, they don't seem willing to bring out their big guns anymore having lost 2 of their most prized jewels i.e. SU-30MKI and Rafale in one night.
3. We're still at the stage where India has withdrawn from the IWT and the article 370 remains revoked.
4. PAF on a tactical level has completely owned the IAF.
Deterrence needs to be established, and it cannot be done so unless Pakistan doesn't do something big. Border skirmishes don't count, the fight needs to be taken to Indian cities across the international border since India via its aircrafts/UAV's has done the same.
Pakistanis have picked up bodies since 2010's, our forces have been in conflict and are battle hardened. The question remains, are the Indians/keyboard warriors that love war mongering in the comfort of their own home, are they as ready to pick up bodies? Are they ready to feel the fear of missiles landing left and right .. So far the Indian media has made every loss in to a victory using theatrics/bollywood, but the question remains, does India really have the appetite outside of computer/LED screens?
We cannot afford to loose the moral high ground, hence targeting any civilian infrastructure or places of worship should be out of the question.
What remains are military/strategic targets like dams, Enemy air defense sites, airports, military installations, all of those things while creating an environment which breeds fear in the Indian side, while trying to minimize collateral damage.
What is clear is that Pakistan MUST respond now. The earlier supposition that the situation will fizzle out as it were with the 5 aircrafts kill for the PAF, while IAF taking out "terror camps" being the off ramp for India, is out of the picture now.