Bring the rice, cinnamon, a pinch of salt and 3 1/2 cups of the milk to a simmer in a medium saucepot set over medium heat, stirring occasionally. Cook, stirring occasionally, until the rice is just tender, about 12 minutes.
Meanwhile, whisk together the sugar, vanilla, egg yolks and the remaining 1/2 cup milk in a medium bowl until smooth. While whisking constantly, slowly add about 1 cup of the hot milk mixture to the yolk mixture until smooth and then whisk back into the pot. Stir in the raisins.
Simmer the pudding, stirring constantly, until slightly thickened, about 5 minutes. It will continue to thicken as it cools. Remove and discard the pieces of cinnamon stick.
Pour the pudding into a bowl and press a piece of plastic wrap directly on the surface. Cool to room temperature and then refrigerate, if desired. Serve at room temperature or cold, sprinkled with freshly ground cinnamon.
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