Melt the butter in a medium-sized saucepan over medium heat. Add the rice, sugar, salt, and vanilla bean paste and stir to combine. Add the water and milk. Bring the mixture to a boil and then turn the heat down to low. Let simmer on low for 15-17 minutes, stirring every few minutes. The rice should be cooked to your desired doneness now.
In a small mixing bowl, whisk together the whipping cream and egg. Temper the mixture by adding about ½ cup of the hot rice mixture and quickly whisking. Add everything back to the pot and return to cooking over medium heat. Cook the pudding for 3-4 more minutes or until hot and bubbly, to ensure the egg is fully cooked.
Serve hot or cold with whipped cream or ice cream. Enjoy!
Notes
Use 2 teaspoons of vanilla extract or the seeds scraped out of 1 whole vanilla bean instead of paste.
Any kind of milk would work including dairy-free milk such as coconut or almond milk.
Use coconut cream or thick coconut milk for a dairy-free option.
Refrigerate leftover rice pudding within 2 hours of cooking in an airtight container for up to 3 days.