Khaled's wife, Nicole Tuck, commissioned Haute Living -- which also threw the birthday bash -- to make a VERY nice watch for Asahd. The piece is laced with more than 600 diamonds which weigh in at 11.65 carats ... all for just over $100k.

We're told the watch is a Franck Muller model in rose gold, with Asahd's name and birth date engraved on the back. It's also adult sized, and seeing as how Asahd just turned 1 ... he probably won't be ballin' out anytime soon. Good to know it's waiting on deck though.

You da best, Mom & Dad!