Take a sauce pan, add sago and 3 cups of water. Let sago boil in a medium flame for 10 minutes. Stir it continuously. Sago may tend to stick at the bottom, so be careful. As we soaked it for some time, it will get cooked soon. Once you see the sago getting transparent, it means it is cooked. Drain it and pour some cold water and drain. Keep it aside.
Grind the cooked carrot into a smooth paste.
Heat butter in a pan and add ground carrot.
Saute for 2 minutes. Take care not to burn the carrots.
Now add milk to this and mix well.
Add salt.
Add sugar.
Add cooked sago.
Add condensed milk too.
Let this boil in a medium flame for 10 minutes. Stir it continuously.
Serve it chilled or not chilled. Delicious Carrot Sago Payasam is ready. Enjoy!