Wash basmati rice and soak in water for 15 minutes.
Bring milk to a boil in a heavy pot.
Add soaked rice and cook on low flame stirring frequently for 30 minutes until rice is completely soft.
Stir in sugar, chopped cashews, and raisins; simmer for 10 minutes until thick.
Add cardamom powder, remove from heat, and serve warm or chilled.