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Place the milk, rice and salt in a large saucepan over medium-high heat and bring to the boil. Reduce heat to medium-low and cook, stirring, for 20 minutes or until the rice is tender.
Add the sugar and vanilla. Increase heat to medium-high and bring to the boil. Boil for a further 5-8 minutes or until the rice is soft and the mixture thickens.
Spoon the rice evenly among serving bowls. Sprinkle with nutmeg and serve immediately.