In a small bowl, combine 1/2 cup of the milk with the cornstarch and rose water; set aside

In a saucepan, cook the remaining 2 1/2 cups of milk and sugar over MEDIUM HIGH heat, stirring frequently, until the sugar dissolves

When bubbles begin to break the surface, reduce the heat to LOW and add the cornstarch solution, stirring constantly

Cook the pudding at a gentle simmer, stirring very frequently, until it thickens enough to coat the back of the spoon, about 5 - 7 minutes

Pour the malabi into 6 to 8 serving dishes, and allow to cool slightly

Cover with plastic wrap and refrigerate for at least 3 hours

In a small saucepan, combine the sugar, water, and jam

Bring to a simmer over MEDIUM HIGH heat, stirring to dissolve the sugar and incorporate the jam

When the mixture is smooth, remove from the heat and stir in the rose water; transfer to a dish and refrigerate until ready to serve

To serve the malabi, spoon a little syrup over the top, and garnish with chopped pistachios