1. Place water in a lightly greased saucepan and bring to the boil.
2. Add rice, stir until boiling, then simmer until water is absorbed.
3. Add milk and a pinch of salt, stir well and leave over moderate heat until beginning to boil.
4. Reduce heat so that milk simmers gently.
5. Simmer for 25 to 30 minutes, stirring occasionally, until rice is very tender and mixture is creamy.
6. Blend custard powder with cold milk, stir in half a cup of the hot mixture and pour back into the saucepan contents, stirring constantly.
7. Add sugar and cook until bubbling gently.
8. Pour into serving dish and dust with ground nutmeg.
9. Serve hot or warm with stewed fruit.
Note: If you like rice custard with a browned 'skin' on top, leave to cool in dish until a skin forms and place under a hot grill until top is golden brown. Sprinkle with nutmeg after browning.