Australia will host the March 1-21 tournament in Sydney, Perth and the Gold Coast, four years after Shui Qingxia-coached China shocked South Korea 3-2 in the 2022 final in India to claim their record-extending ninth title.
Former Australia women's coach Milicic replaced Shui in 2024, with the former China midfielder and Olympic silver medallist sacked after the team failed to qualify for the Paris Olympics.
Milicic and a cohort of Australian assistants now run the show as China looks to go back-to-back in the quadrennial, 12-nation showpiece.
For 51-year-old Milicic, it has been a case of getting back on the horse following his 2022 exit from Sydney-based Macarthur FC during a personally trying period at the A-League team.
Milicic resettled with his family in his parents' homeland of Croatia for a break before China came calling.
"Being at Macarthur that second year we started so well and then COVID killed our team," he told reporters on Wednesday.
"My father passed away the year before and I never got to Croatia for the funeral and all that, and I was just burnt out from football - that's been everything my whole life.
"I just needed a break from it.
"When I had the two years off and this opportunity came ... I can actually say, even in the difficult times, I've loved every minute of it."
East and West
Now based mainly in Beijing, Milicic has thrown himself into restoring China into an Asian heavyweight, putting them through tough lessons against top nations.
They suffered an 8-0 defeat to European champions England at Wembley in November, underlining the gap in women's football between East and West.
During their golden era, China rivalled the United States at the top of the women's game and reached the final of the 1999 World Cup.
Fans hoping for a rapid return to those glory days may be disappointed, Milicic suggested.
World number 17 China - and Asia more broadly - have struggled to match the runaway improvement of European nations who have invested heavily in the women's game.
"It's difficult to play catch-up," he said.
"Not just in Europe, but when you look in other continents, it's a rapid rise, getting more professional every year.
"You can't compare football from then (1990s) to now.
"The new (China) girls want to create their own history."
They will have their chance at the Asian Cup where they face Group B rivals Bangladesh, Uzbekistan and a tough match against three-times champions North Korea, the second-highest ranked in the continent after Japan.
With Australia boasting a Chinese-born population of more than 600,000, Milicic's team will be banking on strong support at their games.
"Growing up in Sydney, I know how strong the Chinese community is," said Milicic.
"But it's also up to us as players and staff to make them proud and put on good performances so we can send them away from the stadiums happy."