Bring water to a boil in a large saucepan. Wash the rice and drain it. Add the rice to the boiling water, and cook for 5 minutes.
In a separate saucepan, bring the milk to a boil over medium heat.
Remove the cooked rice and drain it. Slowly drop the rice into the boiling milk. Lower the heat and add salt, vanilla bean, and sugar. Cover and simmer 15 - 20 minutes, stirring occasionally, until the milk is absorbed. Add more milk, if necessary for a tender rice.
Serve warm, cold or room temperature - your preference.