Soak the rice in water for at least a half hour.
Bring the milk to a boil on the stovetop. Slowly add the soaked (and drained) rice. Mix well and keep a wooden ladle in the milk as it continues to boil, to prevent it from boiling over.
Stir frequently until the rice is well cooked, breaking apart, and the milk has reduced in volume by about half.
Add the sugar, and boil again, stirring frequently to prevent any catching and burning at the bottom of the vessel.
When the boil changes from a watery one to a bit of a “mud pot” boil, turn off the flame. Allow to cool.
After the payasam has cooled to just warmer than room temperature, add 1 cup of the panampazham pulp, the fresh coconut, powdered cardamom and freshly grated nutmeg. Whisk together well.
If your milk splits even after all this care—don’t worry, whisk well, and enjoy the slightly different texture of the resulting payasam.
Serve at room temperature or chilled. Be sure not to re-heat or the milk in the payasam will split for sure or split more!