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Bring 1 1/2 cups water to a boil in a saucepan.
Stir the rice into the boiling water. (do not put in if the water is NOT boiling) … Reduce the heat to low then cover and simmer for 20 minutes.
In a new saucepan, combine 1 1/2 cups cooked rice, 1 1/2 cups milk, sugar and salt.
Cook over a low-medium heat until thick and creamy. Stir in the remaining 1/2 cup milk, beaten egg and cook 2 minutes more, constantly stirring.
Remove from the heat and stir in the butter and vanilla extract.