In a small bowl, rinse and then soak the rice in water for at least 20 minutes. Once soaked, completely drain the water (see note 1). Set aside.
In a medium sized pot, heat the ghee over low to medium heat. Saute the cinnamon stick, cardamon pods, bay leaf, and cloves for 2 to 3 minutes.
Next, add the cumin seeds and chili, and saute for a further 2 to 3 minutes.
Place the soaked and drained rice in the pot and fry for 3 to 4 minutes.
Add water and salt. Stir until combined. Taste for salt, if you find it lacking, you can add more now.
Bring the liquid to a boil over high heat, stirring occasionally. When the mixture reaches a boil, reduce the temperature to low. Cover with a lid and cook simmering for 25 minutes. Turn off heat and rest rice with lid on for 10 to 15 minutes.
Fluff the rice with a fork or spoon. Remove the spices. Garnish with chopped nuts, raisins coriander or parsley leaves if desired and serve.