Khawaja, who scored 137 in the first innings in his first appearance since the 2019 Ashes series in England, headlined another dominant day for Australia with an unbeaten 101 off 138 balls.
Playing his first Test since 2019, Khawaja made the most of the opportunity as he anchored Australia's innings with his 137 from 260 balls.
Cricket Australia's chief executive Nick Hockley said there was no need to change current plans, which include staging the fourth and fifth tests in Sydney and Hobart, respectively, in January.
Starc's first ball strike set in motion two sessions of dominance from Australia's bowling attack, which dismissed England for 147 on Day 1
Cummins returned 5-38 from 13.1 overs, with Starc and Hazlewood taking two wickets apiece.
The Australians have won all eight day-night, pink ball tests they’ve played, starting with the world’s first against New Zealand at Adelaide in 2015.
The 34-year-old off-spinner backed Paine, adding that the stumper was the 'best keeper in the world'.
The 30-year-old, who has not played any cricket since July, was added to Chris Silverwood's 17-man squad last month.
Australia have won two of their three matches and will now play Bangladesh and the West Indies in their remaining Group 1 matches.
Jos Buttler's quickfire fifty (71 off 32) and Chris Jordan's sensational bowling (3/17) powered England to a convincing eight-wicket win over Australia in a Super-12 match at Dubai on Saturday.
Both teams go into the high-pressure game unbeaten.
There were restrictions in place at the MCG last year and the crowd for the Boxing Day Test against India was capped at 30,000.
Silverwood also said that his coaching staff would study how India's bowlers operated during their series in Australia.
Ashes series make people's careers, expecting England to come out pretty well full-strength: Nathan Lyon
Australia spinner Nathan Lyon said he is expecting England to send its full-strength squad to Australia for the Ashes.
Australian cricket will face a major financial loss if the England team refuses to tour Down Under for the Ashes series, which is scheduled to begin in December.