In this study, we develop a new CAD system for accurate thyroid cancer classification with emphasis on feature extraction. Prior studies have shown that thyroid texture is important for segregating the thyroid ultrasound images into different classes. Based upon our experience with breast cancer classification, we first conjuncture that the Discrete Cosine Transform (DCT) is the best descriptor for capturing textural features. Thyroid ultrasound images are particularly challenging as the gland is surrounded by multiple complex anatomical structures leading to variations in tissue density. Hence, we second conjuncture the importance of localization and propose that the Local DCT (LDCT) descriptor captures the textural features best in this context. Another disadvantage of complex anatomy around the thyroid gland is scattering of ultrasound waves resulting in noisy and unclear textures. Hence, we third conjuncture that one image descriptor is not enough to fully capture the textural features and propose the integration of another popular texture capturing descriptor (Improved Local Binary Pattern, ILBP) with LDCT. ILBP is known to be noise resilient as well. We term our novel descriptor as Binary Pattern Driven Local Discrete Cosine Transform (BPD-LDCT). Final classification is carried out using a non-linear SVM. The proposed CAD system is evaluated on the only two publicly available thyroid cancer datasets, namely TDID and AUITD. The evaluation is conducted in two stages. In Stage I, thyroid nodules are categorized as benign or malignant. In Stage II, the malignant cases are further sub-classified into TI-RADS (4) and TI-RADS (5). For Stage I classification, our proposed model demonstrates exceptional performance of nearly 100% on TDID and 97% on AUITD. In Stage II classification, the proposed model again attains excellent classification of close to 100% on TDID and 99% on AUITD.