In May, Varsha became the youngest ever girl to get an officially recognised black belt.
High-kicking Varsha faced up to British Karate Federation Champion Juan Moreno in London.
Luckily the match-up was not for real, although dad-of-two Juan, 31 years her senior at 36, admitted he was shocked at just how good Varsha was.
He said: "She is the ultimate karate kid.
"It's hard to remember she is just five. Her skills and concentration are amazing.
"I have two young children myself but I couldn't imagine them putting in the concentration and effort Varsha has.
"I think it is an extraordinary achievement how far she has come in just a few short years.
"Varsha, her trainer and her dad are definitely the real thing."
Juan, who studies Bunjinkai karate, could be fighting for Britain in the upcoming European Championships in 2010.
The five-year-old's talents are so amazing computer game makers and creators of the Lara Croft Tomb Raider series, Eidos, have taken notice.
Her skills have been replicated in the software houses' latest computer game Mini Ninjas released this month.
Varsha has been training since she was just two years old and has already got 15 katas, or disciplines, of karate under her belt.
Her skills also include the mastery of deadly martial arts weapons including the yawara stick, or chinese stick, and the nunchucks.
Varsha, who is a student at the KoInChi Academy of Martial arts in Allappuzha, India, has to train for a gruelling two and half hours a day to keep her skills fresh.
In front of a crowd of thousands the diminutive dan received her official title from state officials in the country in May.
Varsha, who also finds time to attend her local English school when she is not training, said she was very proud of her belt.
She said: "I was very excited when I got my belt and I like karate very much.
"The other children are very proud of me, I don't think they are frightened of me.
"I hope I can get better and I want to keep doing karate."
Her father Viswanathan Vinod, 37, said Varsha's family and the entire neighbourhood were excited about her achievement.
He said: "She was absolutely delighted, but I don't think she has really understood how amazing this thing is for someone of her age.
"She picked it up very well, to everybody's surprise, even though I was a little worried, but she loves it.
"We all are extremely delighted and proud."
"There were thousands of people there and they all congratulated her after her demonstration of double nunchuck rotation and kangudai Katas, which are karate disciplines.
"I never thought that she could handle that much so young and the effort she has put in is amazing.
"Her lifetime ambition is to be a physician, but at the same time she wants to continue to practice more on karate."
Her mother, schoolteacher Sunitha Vinod, 27, said her daughter had a wisdom beyond her years.
She said: "Varsha has always been quite a serious little girl and she knows what she wants, I am very proud of her.
Varsha's coach VZ Sebastian, who has been teaching students for more than 30 years, said he saw something special in Varsha.
He said: "I spotted that this little girl had excellent concentration and dedication at this early stage.
"We trained together and she always puts a great effort in her training.
"I am very proud of her for learning 15 katas and kubudos and I think she is very special student, but I think the best is yet to come from her in future."
Chief instructor Andy Kirby, from the UK's Central Federation of Traditional Shotokan Karate, said Varsha was definitely very unusual.
He said: "She must be exceptionally talented, be very good technically and have a good memory.
"I have never heard of a child this young getting a black belt before; she must be very special.
"I give her a pat on the back for doing this. In the UK we don't even start training children until they are at least five years old because of insurance issues."
The Guinness Book of Records and India's own record book Limica are now looking into Varsha's achievement to create a new world record.