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Combine the milk and sugar in a small heavy saucepan.
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Scald milk, stirring, over medium-low heat.
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Stir in orzo.
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Cook,stirring frequently and adjusting the heat to prevent milk from boiling over, until mixture is very thick and orzo tender to the bite, 20 to 25 minutes.
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Off heat, stir in the vanilla.
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Pour mixture into a large bowl or 4 individual custard cups.
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Cool slightly.
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Serve warm or at room temperature.