In a medium saucepan brfing milk just to boiling. Stir in uncooked rice and raisins. Cook covered, over low heat for 30 to 40 minutes or until most of the milk is absorbed, stirring occasionally. May appear curdled.
Remove saucepan from heat. Stir in sugar and vanilla. Spoon into dessert dishes. Sprinkle with nutmeg. Serve warm or chilled.