Heat oil in a saucepan over low heat.
Stir fry the chopped nuts till they are light golden in colour.
Remove them from the pan into a plate and keep them on the side.
To the remaining oil add the soaked rice.
Stir fry for about 1 minute, mixing all the time.
Add the shredded coconut and stir fry for 30 seconds or so.
Add 2 cups of water. Mix well.
Increase the heat to medium and allow the rice to cook.
Stir it occasionally so that the rice does not stick to the bottom of the pan.
Allow the rice to cook a bit for about 10 minutes.
By now most of the water will have evaporated.
Add the sugar and mix well.
Add the coconut milk.
Mix well. Allow the kheer to cook in the coconut milk over low heat.
Do not bring to a rolling boil as you don't want the fat to separate from the coconut milk.
When the kheer becomes a bit thick after 10 minutes, add the fried nuts and cardamom powder.
Mix well. Allow it to simmer for a few minutes.
Remove the pan from the heat.
Serve it hot or cold. If you prefer cold kheer, allow it to cool at room temperature. Then put it in the fridge.