In a saucepan combine the rice and water, bring to a boil, stirring, and simmer, stirring occasionally, for 15 minutes. Add 2 cups of the milk, the sugar, raisins, cashews or pistachios, cardamom seeds, and cinnamon, and simmer, stirring often, for 10 to 15 minutes more, or until rice is tender and mixture creamy. Add additional milk, if necessary. Pudding may also be served chilled.
*Arborio or Indian short-grain rice is available at specialty food shops.