Combine rice and water is a mixing bowl. Soak rice for 10 hours or overnight. In the morning, drain the rice completely and spread it out on a kitchen towel to dry for about 30 minutes. Rice should not become very dry, it should be slightly damp.
Transfer the dried rice into a blender and grind into fine powder. Use a fine sieve to make a very fine rice flour. If there are lot of coarse grains left in the sieve, then grind and sieve them again. You should have a very fine rice flour.
In a small pan, melt 2 tablespoons ghee. Add coconut chips, cashews and cook until nicely toasted, about 2~3 minutes. Turn off the heat and set these aside until ready to use.
In a medium size saucepan, combine jaggery and water. Cook on medium heat, stirring occasionally until the syrup thickens and reaches soft ball stage. To test the consistency of the syrup - add a drop of hot syrup into a bowl of cold water. It should easily form a ball without dissolving in the water. It will flatten out when removed from the water.
Once the jaggery reaches the soft ball stage, turn off the heat and remove the pan from heat. Stir in the toasted coconut and cashews along with little bit more ghee. Stir in about ¼ cup of rice flour at a time and mix well after every addition. You may not need all of the rice flour, so make sure to add it in small installments. Keep adding flour and stirring until it comes together into a chalimidi mudda or forms a non sticky ball. It should still be creamy like khova. Divide the mixture to smaller pieces and place them in an airtight container. Let cool completely before covering with lid and storing.