Panchakki, known as the water mill, takes its name from the mill which used to grind grains.It is beleived to be constructed by Malik Ambar. The monument displays the scientific thought process put in medieval Indian architecture. It was designed to generate energy via a stream brought down from a nearby hill . The building, attached to the dargah of Baba Shah Musafir, a Sufi saint, is located near Mahmud Darvaza. The complex has a library of old Urdu, Persian and Arbic books. Panchakki was built in 1744 AD.