While still on Kashmir, here's a recent piece by Steve Coll that tells us of a secret peace process the Musharraf and the Manmohan Singh administrations together tried to develop -- and apparently they were making progress. Of course, with Musharraf's fall, this has been put on hold. Just to clarify, my link is not meant to be an endorsement of Musharraf or Singh. I linked because the essay, though a tad long, has a great summary of the history and broader geopolitics of the region in addition to the new angle on India-Pakistan relations. Basharat Peer of Curfewed Night is also mentioned.
(I'd forgotten to link to the essay -- my apologies to those readers who may have come here, and muttered: "Which essay is this guy talking about?")