Cooking rice and milk simultaneously is the basis of some popular cereal-based dairy products (e.g., rice-pudding, kheer). A conceptual design for continuous processing of rice in milk is being developed and is a helical coil heat exchanger to cook the rice-milk mixture, which is otherwise prepared as a batch process. The present study investigates the thermo-physical properties of the rice-milk mixture as functions of temperature and composition. In addition, a fundamentals-based heat transfer model is presented that includes the effects of milk fouling to estimate the drop in temperature of the product at the outlet, the degree of fouling, and fouling thickness that would build up with time and length of the helical coil. Fouling thickness increases towards the outlet and the rate of increase in fouling thickness decreases with time. At the outlet, a significant drop in temperature is observed (11 degrees C) as an adverse effect of milk fouling.