In a blender, combine the rice, water and cinnamon stick. Blend on high for 10 minutes, and pour into a large pitcher. Cover with plastic wrap and let rest at room temperature for at least 3 hours.
Blend the strawberries until completely smooth and pour into the pitcher with the rice water mixture. Give it a stir and then pour into a large measuring cup through a fine mesh sieve to remove the rice bits and strawberry seeds.
Stir the milk, cinnamon and sugar into the horchata and then divide between the popsicle molds. Insert popsicle sticks and freeze until firm, about 6 hours or overnight.
Place the freeze dried strawberries in a food processor and process a few times until coarse crumbs and pour out onto a shallow plate.
Dip each popsicle, at an angle, into the strawberry crumbs right before serving.