Preheat the air fryer: Set it to 320°F (160°C) for even, gentle toasting.
Toast the vermicelli: Toss vermicelli with the butter or ghee and a small pinch of salt. Spread in a thin layer in a parchment-lined air fryer basket. Air fry for 4–6 minutes, shaking halfway, until golden and fragrant.
Watch closely to prevent burning.
Toast the coconut and nuts: In the same basket (or a separate tray), air fry the coconut and chopped nuts for 2–4 minutes at 300–320°F (150–160°C), shaking once. Remove as soon as they turn lightly golden.
Warm the milk and spices: In a medium saucepan, combine milk, water, cinnamon sticks, and cardamom. Bring to a gentle simmer over medium-low heat, stirring occasionally to avoid scorching.
Sweeten and flavor: Stir in sugar, vanilla, and rose water or almond essence.
Taste and adjust sweetness. Keep the heat low and steady.
Add vermicelli and sultanas: Tip the toasted vermicelli and sultanas into the pot. Simmer gently for 8–12 minutes, stirring often, until the noodles are tender and the mixture thickens to a pourable custard consistency.
Finish with coconut and nuts: Stir in half the toasted coconut and nuts.
Remove the cinnamon sticks and cardamom pods if you prefer a smoother spoonful.
Adjust texture: If too thick, loosen with a splash of warm milk. If too thin, simmer another 2–3 minutes. It will thicken more as it cools.
Serve: Ladle into bowls.
Top with remaining toasted coconut and nuts, and dust lightly with nutmeg or cinnamon. Enjoy warm or let it chill for a firmer pudding.