Heat oven to 350°F. While rice is cooking, in small saucepan, heat milk over low heat until very warm. DO NOT BOIL. Remove from heat.
In ungreased 1 1/2-quart casserole, combine warm milk and all remaining ingredients. Stir in cooked rice. Place casserole in 13x9-inch pan; place in oven. Pour boiling water into pan around casserole to a depth of 1 inch.
Bake at 350°F. for 40 minutes. Carefully stir pudding; bake an additional 15 to 25 minutes or until knife inserted in center comes out clean. Serve warm.