This creamy payasam can be made with just three main ingredients. Let’s check out the recipe:

Ingredients
Basmati rice - 1/4 cup
Sugar - 1/2 cup
Water - 1 TBSP and 1/2 cup
Milk - 4 cups (1 liter)
Ghee (optional) - 1 TBSP
Cashews (chopped) - 1 TBSP (optional)
Almonds (chopped) - 1 TBSP (optional)
Raisins - 1 TBSP (optional)

Method
1. Wash the rice. Add some water and soak for at least 30 minutes.
2. Drain the rice. Add to a blender. Pulse for a few seconds.
3. Meanwhile, add the sugar to a pan. Keep on low flame.
4. Add the tablespoon of water. Mix well. Allow it to dissolve. **process takes several minutes. Please continue to keep on low flame.
5. Once sugar turns a golden brown color and has caramelized, add 1/2 cup of water. Mix and dissolve fully. Set aside.
6. To another pan, add the milk. Allow it to boil. Keep on medium flame.
7. Once milk has boiled, add the coarsely ground rice. Cook until milk has reduced by half.
8. When the rice has cooked fully and milk has reduced, gradually add the caramel syrup while stirring continuously. Cook for 5 minutes. Keep on low flame.
9. In the meantime, to a small saucepan, add the ghee, cashews and almonds. Roast for a minute. Keep on low flame.
10. Add the raisins. Roast until plump.
11. Remove nut mixture from pan. Add it to the Payasam. Mix well. Cook for a minute and turn off flame.
12. Caramel Payasam is ready!
Can be served hot or cold.

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