In a 2 quart casserole combine the water, uncooked rice, sugar, nutmeg, and 1/8 teaspoon of salt. Cover. Place casserole in oven. Set for 325ºF. for 1 1/2 hours. Before serving, fold in butterscotch pudding. top each serving with whipped cream or whipped topping. Makes 6 to 8 servings