Rani Rampal (4th, 20th minute) and Jaspreet Kaur (9th, 39th) scored two goals each, while Namita Toppo (17th) and Vandana Kataria (50th) were the other goal-getters.
Malaysia's lone goal was scored by skipper Nadia Abdul Rahman from a penalty-corner.
Complete coverage: 2014 Asian Games
India, in all likelihood, will face last edition's silver medallist Korea in the semi-finals on Sunday as the hosts presently lead Pool B and are expected to finish on top.
The Indians had to raise their game after the close 1-2 loss to defending champions China in their last match and they did just that.
They came out with purpose and controlled the game from the onset with brisk passing.
It took them just four minutes to surge ahead, Rani scoring from a field effort before Jaspreet doubled the lead five minutes later by converting a penalty-corner.
Just two minutes into the second quarter, India increased the tally
when Namita scored a field goal. Rani then scored again from a field effort to give the side a comfortable 4-0 lead at the lemon break.
Nine minutes into the third quarter, Jaspreet scored with a rasping drag-flick from a penalty-corner to make the scoreline 5-0.
Malaysia produced their best hockey in the third quarter and pulled one back through Nadia, who converted a penalty-corner.
But 10 minutes from the final whistle, India restored their five-goal lead when Vandana scored a field goal.
From there on victory was just a formality for the Indian women and they defended stoutly to keep the Malaysians at bay.
Image: Drag-flick specialist Jaspreet Kaur
Photograph: Lintao Zhang/Getty Images