I've always thought the name was pronounced "Mi-li-cha" or "Mi-li-kah", until I realize it's MILL-its-ah. In Slavic languages, I believe the letter C is pronounced like a soft "ch" as in English word "CHeck". Personally, I think Milica is a sweet name. It's like the Balkan counterpart to Charlotte or Ella.
This is my sister's name! It's very nice and graceful, she was named after Serbian empress Milica, the wife of our Tsar Lazar! One of the most beautiful names.