Add the uncooked rice to a food processor. Chop for 5 minutes or until pulverized.
Add the sugar and spices and pulse to mix.
Pour the rice and sugar mixture into a large bowl. Stir in the water, milk and vanilla.
Cover the bowl and refrigerate for 8 hours.
After 8 hours, strain the rice from the milk and discard the solids. Pour the horchata into a large pitcher for serving.
To make this a boozy cocktail, fill a glass tumbler with ice and add 1.5 ounces of Makers Mark whisky. Top with the horchata, stir and garnish with ground nutmeg. Serve immediately.
Store any leftover horchata in the refrigerator for up to 5 days.
