Under normal circumstances, the smart thing would be to stay as far away from this fight as possible. Unfortunately, we are on good terms with India, and, as you point out, we are trying to be on good terms with Pakistan, which is essential in our anti-terrorism war.

Also, this is just another outbreak of the larger Muslim/Not Muslim conflict, and no matter what we do we're probably going to end up on even more Muslim shitlists.

I don't know what economic weight we can bring to bear on both nations, but it seems like the most plausible solution. This could end up as bad or worse for the U.S. than the Israel/Palestine tarbaby that we are currently stuck in.