What are the best practices for converting Punycode to UTF-8 in PHP when dealing with internationalized domain names?

When dealing with internationalized domain names (IDNs) in PHP, it's important to convert Punycode strings to UTF-8 for proper display. One way to achieve this is by using the `idn_to_utf8()` function provided by the `intl` extension in PHP.

$punycode = "xn--bcher-kva.com";
$utf8 = idn_to_utf8($punycode);
echo $utf8;