In a medium saucepan, combine the rice, water, and a pinch of salt. Bring to a boil, then reduce heat and simmer for 10 minutes, stirring occasionally.
Add the milk, sugar, and 1 tsp of Ceylon cinnamon powder. Continue cooking over low heat for 25–30 minutes, stirring often, until the rice is tender and the mixture thickens.
Stir in the vanilla extract and the remaining ½ tsp of Ceylon cinnamon powder.
Remove from heat. Serve warm for a cosy treat or chill in the fridge for at least 2 hours for a refreshing dessert.
Sprinkle with a pinch of nutmeg or more cinnamon before serving, if desired.