Heat the ghee or butter in a pot over medium heat and cook the mustard seeds until they pop. Add the cinnamon, cardamom and cloves, and stir-fry for 1 minute. Add the shallots and chillies, and cook for another 3 minutes.
Add the rice and stir to coat with the spices for 1 to 2 minutes, then add the water and salt, and stir again. Reduce the heat to low, cover and