Applies to all those who are getting "Nvidia Kernel Mode Driver has stopped responding and has successfully recovered"
Main issue: Limitation of GPU Clock due to power management.
Issue 1: nVidia Powermizer in graphic driver Control Panel is set to Adaptive.
Solution: Set to Prefer Maximum Performance. If you are not using a portable device, select this. It will remove the limit imposed by aggressive power management.
Tip: There are many guides online that tell you to insert certain registry modifications, try to ignore them. It can damage your software and hardware.
Issue 2: Windows 7 Control Panel Power Options is set to Balanced.
Solution: Set to High Performance. Don't worry, if you are running a PC, this is harmless. It's harmless for any device, it's just more suitable for PCs and devices on AC Power. Balanced option in Windows 7 forces the GPU and HDD to slow down, resulting in severe lag and freezing/lockups.
Experience: Ever since I bought my nVidia GTX650, I have had an issue of freezing screen with blue/black boxes while playing certain games. Happened in Skyrim and Mass Effect 1/2/3, and many more. After setting this option on May the 22nd, and looking through the data in Event Viewer, I can't find a single report on display errors anymore. The problem is solved for me. I am uncertain will this work for you, but please try it and write a reply