Just water would probably also work but it will just be a little bland-er. If it's a boxed risotto they're probably calling for milk to mimic the "creaminess" a slow-cooked risotto would have that a boxed one might not.
So if you just use water it may end up more like regular rice or rice-a-roni.
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So if you just use water it may end up more like regular rice or rice-a-roni.