In the broad pan boil, water, 1/4 cup of milk along with saffron, cinnamon stick, cardamom pod and bay leaf and pinch of salt.
Drain the soaking rice and add to the boiling mixture. Boil till the rice is about 90% done and fluffy. Drain the water and using a fork gently separate the grains.
In a kadhai, heat 1 tbsp of ghee and roast all the nuts and currants in it. After the nuts are lightly browned, add the tbsp sugar and let it dissolve for a minute.
Add the rice and stir gently. Cook covered for 5 minutes.