Heat a pan at medium heat. Add 1/2 cup of water and grated jaggery or gud.
Mix well and cook till jaggery melt and then take a boil. Once jaggery starts boiling take it away from heat and let it cool down and then sieve it.
Now in pressure cooker take dal, add a pinch of salt and one cup of water. Mix everything well, close the cooker and take 2-3 whistles or till dal cooks properly.
After 3 whistles open the cooker , mix dal and add jaggery water. Mix it well and add one cup of coconut milk and cardamom powder.
Mix everything well and take a boil. Now switch off the heat. Payasam is ready to serve. Garnish it with roasted nuts.