Guru Gobind Singh Ji created the Khalsa in 1699. It is considered as the foremost event in the history of Sikh religion. Guru Sahib took the following steps to create Khalsa:
1. Selection of Panj Piyaras (the Five Beloved Ones): Guru Gobind Singh Ji established the Khalsa Panth on the day of Baisakhi in 1699. Guru Sahib convened an assembly of his Sikh followers at Anandpur Sahib. On that day, his nearly 80000 Sikh followers gathered there. When all the people had settled down, Guru Sahib arrived in the meeting and sat on a raised platform. Guru Sahib brandished his sword and gave a call, “Is there any true Sikh of mine, who is ready to die for Dharma?” First, there was complete silence in the meeting for sometime. Then, Daya Ram Khatri of Lahore stood up and presented himself to the Guru. Guru Sahib took Daya Ram to a nearby tent and returned after sometime with a sword with blood dripping from it. Guru Sahib repeated his call. The second time Dharam Dass Jat of Delhi offered himself. Guru Sahib took him to the tent.
Finally, Guru Sahib, in this way, accepted three more Sikhs one by one. They were Mohkam Chand, Sahib Chand, and Himmat Rai. Guru Sahib was actually trying to check the loyalty of the-Sikh followers. Guru Sahib’s followers did not disappoint him. They won Guru Ji’s favour by this event. Finally, Guru Sahib brought all the chosen ones and raised them to the position of Panj Piyaras or the Five Beloved Ones.
2. Khande Ka Pahaul: After choosing his Panj Piyaras, Guru Sahib bestowed upon them the Amrit from Khande Ka Pahaul. For preparing Khande Ka Pahaul, Guru Sahib asked for an iron vessel. The vessel was filled with pure water, some ‘Patasas’ were added, and the water was stirred with a double-edged dagger by one of the Panj Piyaras. The sacred hymns of the Gurus from, the Adi Granth Sahib, namely Jupji Sahib, Anand Sahib, Chaupais and Sawayas were recited simultaneously. The water which was prepared thus was ‘the Amrit’ or the ‘Sacred Water of Immortality’.
The procedure adopted by Guru Gobind Singh Ji was his new procedure to prepare the Amrit. It was first bestowed upon the Panj Piyaras. Then Guru Sahib instructed them to kneel down and gave them the instruction to give a call, “Waheguru Ji Ka Khalsa, Shri Waheguru Ji Ki Fateh.” Guru Sahib sprinkled the Amrit on their faces and heads. Guru Sahib called each of them as Khalsa and attached the word ‘Singh’ to their names. After that, Guru Sahib received the Amrit himself from the Panj Piyaras. Guru Sahib then revealed that every step was directed by the Divine Power.