I can answer, if you are looking for an answer from statergic point of view...Personally, I will prefer to screw Kashmir valley rather than a war with Pakistan...Because, i feel, Pakistan is not the problem rather problem is internal..
Coming to statergic question....If we go by the mindset of current Indian GOV, India tried to bait Pakistan by crossing the border...It would have been better if Pakistan would have attacked and damaged certain visible military institution inside Indian territory...Remember, in a war, it is expected that loss of life will happen...But we should be able to justify the loss of life...Unfortunately, Pakistan did not take the bait...they crossed the border but could not destroy any visible impact on ground.... Loosing few aircraft is not an enough reason to attack on Pakistan military...It will present us as an aggressor...When IAF crossed LOC to attack militant camp, we played the victim card from terrorism, but now, in order to have a full blown attack, we need Pakistan to make some mistake by attacking and making some visible loss...Otherwise, nothing is going to happen...