A composite nanoparticle, for example a nanoparticle containing one or a plurality of cores embedded in another material. A composite nanoparticle can be formed by a one step process that includes: ejecting material from a bulk target material using physical energy source, with the bulk target material disposed in a liquid. Composite nanoparticles are formed by cooling at least a portion of the ejected material in the liquid. The composite fine particles may then be collected from the liquid. A product that includes composite fine particles may be formed with laser ablation, and ultrashort laser ablation may be utilized so as to preserve composite nanoparticle stoichiometry. For applications of the composite fine particles, optical properties and/or magnetic properties may be exploited for various applications.