Add 1/4 cup rice in your food processor and grind it to break rice. Do not over grind to powder it. Clean rice with water and set it aside.
Add 2 cups of milk and 2 cups of water in a pan and bring it to boil. Add rice and lower flame. Let it cook for 15 minutes till rice gets cooked properly. Keep stirring in between.
Now add 1 cup milk and sugar and mix well. Let it simmer for 2-3 minutes more.
Add Cardamom Powder and mix well. Remove from flame.
Add 1 tbsp ghee in a frying pan and roast cashews and raisins. Add them in payasam and serve.