Fry the cashew nuts and the grated coconut separately in ghee. Keep this aside.
Take a deep bottomed vessel, add two cups of water and the whole milk. Boil for five minutes and then add rice which is washed in water and drained clean before.
Allow the broth to cook on medium flame. When the rice is almost tender, add sugar and the condensed milk. Stir well. Add the grated coconut and mix well.
Add the remaining ghee and top the Paramannam with cashew nuts.