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Combine rice, cinnamon stick and water in a saucepan and bring to a boil. Lower the heat and simmer covered for 15 minutes.
Add the milk, cornstarch mixture, and sugar to the pan. Increase the heat to moderate and stir constantly until the mixture thickens, about 15 minutes.
Add lemon zest, vanilla extract and nutmeg and stir to combine. Spoon into individual serving bowls or glasses and refrigerate for at least 2 hours. Dust with a little cinnamon before serving.
Serves 6 to 8.