Heat 1 teaspoon of ghee in a non-stick pan and add the cashews. Fry them on medium heat for two minutes. Then add the raisins and fry them for another minute to 2 or just until they start to plump up. Take out the raisins and cashews and reserve.
A shallow non-stick 10" frying pan works best for this recipe. It helps cool down the rice faster and makes it easy to mix all the ingredients later in the same pan.
Rinse and drain the rice. Add the remaining ghee to the same non-stick pan. Add the cloves and cardamom and fry them for a minute on medium heat. Add the rice to the pot and stir it gently with the cloves and cardamom for 2 minutes.
Add salt and water. Bring it to a boil on medium-high heat. Turn the heat to simmer and cover the pot. Let the rice cook for 10 minutes. Once the rice is fully cooked, uncover and let it cool down for 5 minutes. Gently fluff the rice.
Cooling it before adding the other ingredients prevents the grains from breaking.
Add grated coconut, sugar or jaggery, cardamom powder, and the saffron milk. Gently mix everything. Cover the pan and cook on low heat for 15 to 20 minutes or until the sugar/jaggery is fully melted and absorbed in the rice.
Garnish with the reserved cashews and raisins. Coconut rice can be served warm or at room temperature.