Sam.
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What about Kashmir which is Pakistan occupied and Gilgit-Balistan. Also shaksgam valley gifted to China by Pakistan and China occupied Kashmir.Yes, it is the ideal solution. But the problem is, both countries will not allow this which may cause slipping away Kashmir territory from their grips. Only viable solution I can foresee is , Kashmiri gaining wide autonomy within Indian union after de-escalating the military stand-off there. For that to happen, both India and Pakistan has to recognize the portion of Kashmir they held as their. Then a mutual, gradual troops withdrawal have to happen and India will bestow Kashmir wide autonomy. In that way, Kashmiri will get a degree of freedom, autonomy and most importantly peace, security and normal life free from overbearing Indian military presence. While India's crucial demand, the territorial integrity will also get preserved.
This is a headache of a situation we are ready to convert LOC to IB for the sake of Kashmiri people but Pakistan will never accept it.