Clean, wash and drain rice.
Heat oil in a heavy bottomed vessel. Add bay leaves and onion slices. Fry till golden brown. Add cloves, cinnamon, cardamom, cashews and ginger paste. Fry till light brown. Add rice, salt and sugar. Stir fry for a few minutes.
Add raisins and saffron-milk mixture and mix.
Add 4 cups of hot water and continue to mix. Cover and cook till rice is done.
Garnish with nuts and fried onions.
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