Preparation of water-dispersible carbon dots from inexpensive natural carbon precursors and its application for purposes such as sensing, bio-imaging and patterning agents is showing growing interest in recent years. In this study, we have reported the preparation of nitrogen-doped carbon dots (N-CDs) using prickly pear as the carbon source and m-xylylenediamine as the nitrogen source using a one-step microwave-assisted synthetic process. The N-CDs prepared were characterized on the basis of elemental analysis, XPS, powder-XRD, FT-IR, Raman, TEM, UV-vis and fluorescence spectroscopy. Doping of nitrogen in the N-CDs made them highly fluorescent and the study on their ion-recognition property revealed that they detect highly toxic Cr(VI) with high selectivity and sensitivity (LOD, 0.04 μM) and without interference from the other ions used in this study. By immobilizing these N-CDs onto filter paper, sensor strips were prepared for on-site monitoring/field applications and they were successfully used for the detection of Cr(VI) in water. Detailed spectral analysis revealed that the mechanism of Cr(VI) sensing involved a phenomenon called the "inner filter effect" and analysis of the fluorescence lifetime data suggested the "static quenching" of fluorescence intensity. These N-CDs were used to prepare fluorescent carbon ink and were successfully used as patterning agents.