Heat oven to 350°F. Heat half-and-half in medium saucepan over low heat until very warm. DO NOT BOIL. Remove from heat.
In large bowl, combine sugar, vanilla and eggs; beat well. Gradually add half-and-half; blend well. Stir in rice and cranberries. Pour into ungreased 2-quart casserole. Place casserole in 13x9-inch pan; fill pan with about 1 inch hot water.
Bake at 350°F. for 30 minutes. Stir pudding. Bake an additional 15 to 20 minutes or until knife inserted in center comes out clean. Sprinkle with nutmeg and cinnamon. Serve warm or cold. Store in refrigerator.