Wash rice. Drain out and keep it aside.

In a heavy bottom pan/uruli, pour water and allow it to boil.

Now pour the thick milk, stir continously and allow to boil.

Stir for about 20 - 30 mins, so that the milk and water mixture reduced to half and the colour turns to pink.

Now add rice and maintain a medium flame and when rice is 3/4 th done add sugar, combine well.

Cook it for another 5 - 10 mins.

Payasam is ready to serve.