Roast the vermicelli in ghee till it becomes golden. Keep it aside.
Soak sago in water for an hour then add it to 1 cup boiling water. Let it become soft. Drain the water and keep it aside.
Now in another bowl having 1 cup boiled water add the roasted vermicelli. Cook until it becomes soft. Drain the water and keep it aside.
In a thick bottomed pan take some ghee and roast the cashews and raisins on low flame. When they become golden transfer them to a plate.
In the same pan add milk and water and bring 2-3 boils.
Add the vermicelli and sago to the boiled milk. Let it cook for 2-3 minutes.
Then add cardamom powder and nutmeg powder to it and mix.
Cook for a while and then switch off the gas.
Now add the grated jaggery and don't cook.
Let the payasam cool so the jaggery will dissolve in it. Stir occasionally and then serve it.
