1. Heat milk and water together on stove top to barely boiling.
2. Add rest of ingredients, except for spices and stir.
3. Cover and reduce heat to very low and cook for 45-50 minutes.
4. Check rice to make sure it is tender and liquid is creamy and thickened, if not, cover again and cook another 5-10 minutes.
5. Will thicken even more upon standing.
6. Sprinkle with Nutmeg or Cinnamon.