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Bhutan is an OTL nation also located between India and China, like Nepal. The first formation of Bhutan was around the 17th century was by Shabdrung Ngawang Namgyal who also cultivated a separate Bhutanese identity. Then, in early 20th century, it came into contact with the British Empire when they were occupying India, after which then continued bilateral relations with India after their independence in 1947.
Alternate versions of Bhutan have been discovered throughout the multiverse: