Wash and soak rice in enough drinking water for 30 minutes.
In another bowl, wash and soak sago in enough drinking water for 15 minutes.
Using a wooden smasher or grater, coarsely powder the jaggery and set aside.
Combine milk and water in a cooking pan. Bring it to boil. When the milk starts to boil, reduce the flame and let it boil for 3-4 minutes.
Drain water from rice and add to boiling milk.
After cooking rice for 2-3 minutes, add soaked sago. Cook for another 3 minutes.
When rice and sago are completely cooked add in powdered jaggery.
Stir gently till jaggery melts.