How many times has this issue been discussed. It's like flogging a dead horse. Here are your answers in brief.
As per UN Resolutions of 1948, Part II, it very clearly states that Pakistan is to withdraw all its forces included those tribals used for the purpose of fighting in J&K. (That includes Pak Administered Kashmir and Gilgit Baltistan).
The second step is that after due verification by the UN, the Indian Army will maintain a minimum force level to ensure security of J&K till a plebiscite is held.
The third and final step is for a plebiscite to be held in the entire J&K including Pak administered Kashmir and GB.
Pakistan is yet to withdraw its forces from Kashmir as the first step according to the UN Resolutions. That is now an impossibility and therefore the plebiscite issue is as dead as a dodo.
But now Pakistan has complicated things further by gifting 5800 sq km of Kashmir's Shaksgam Valley to China in 1963, against the wishes of the Kashmiri people.
And then you say 700,000 Indian troops in Kashmir? It's a lie that's been perpetuated ad nauseam. 700,000 troops means an equivalent of 46 infantry divisions!! Wow! That's more than the strength of all infantry divisions in the Indian Army! This nonsense needs to stop. It's beyond hilarious! The actual strength in Kashmir is 220,000 which includes the BSF, CRPF, Rashtriya Rifles, J&K Police and the Territorial Army. Most of the Army has been deployed on the IB/LoC.