Place rice, milk, and sugar in large saucepan and cook on top of stove. Soon as it come to a boil, turn down heat and simmer for 45 minutes, stirring frequently. Rice will burn easily if you don't stir as soon as you see big bubbles rising to the top of the pan. Remove from heat.
In a separate bowl, beat 1 egg, 1 cup of milk, and 1 teaspoon of vanilla. Add to cooked mixture. Let it come to a 2nd boil, remove from heat and stir in raisins which have been soaked in hot water for about 5 minutes.
Sprinkle with cinnamon and/or nutmeg. For my personal taste, I put the cinnamon (about a quarter teaspoon) right in the pudding. I sprinkle the nutmeg over the pudding while it's cooling. This pudding is good warm or cold. Enjoy!