In a saucepan, combine rice & water. Bring to boil, then turn heat down to low & cook 10 minutes, stirring frequently with wooden spoon.
Warm milk & stir into rice along with half the sugar [NOTE: If your preference is for a less-sweet pudding, consider reducing the 3/4 cup to 2/3 cup, then use HALF OF THAT at this time]. Cover & continue to cook over very low heat for 20 minutes or until most of the liquid has been absorbed, stirring occasionally.
Dissolve cornstarch in as little cold water as possible (about 2 tablespoons, but make sure it is FULLY dissolved) & add to rice.
Continue to stir briskly, simmering for a full 5 minutes, then remove from heat, & set aside, covered, for 10 minutes.
Whisk egg yolks with the last half of the sugar, then add to rice mixture, stirring with wooden spoon until very well blended (to thicken & to prevent yolks from cooking separately).
Set aside to cool in the saucepan or in individual serving dishes.
Serve at room temperature, sprinkled with cinnamon.