Place cauliflower rice in a microwave safe bowl. Cover with cling wrap and microwave for 2 to 3 minutes.
Remove from microwave and drain out excess water. I used a fine mesh sieve to do this. Gently press the cauliflower rice to get out additional excess liquid.
Place drained cauliflower rice in a bowl. Stir in tomato puree, parmesan, mozzarella, garlic, red pepper flakes and basil. Let chill in the refrigerator for at least 30 minutes.
While the rice is chilling, create the creamy basil pesto sauce. In medium bowl stir together cream cheese, pesto, lemon juice, pepper, salt and milk until smooth. Place in the refrigerator until ready to serve.
Prepare your dredging station by setting out 2 bowls. In one bowl, add eggs and lightly beat them. In the second bowl, add the breadcrumbs.
Heat up enough oil for frying in a heavy bottom pan (my oil was about 2” to 3” deep). Heat your oil to 375°F, or, if you don't have a thermometer, once the oil begins to shimmer, drop in a test couple grains of cooled cauliflower rice — if they start to sizzle, the oil is ready!
Remove rice mixture from refrigerator. Form balls of rice in your hands, packing them tightly. My arancini were about 1 1/2 to 2 inches thick. Dip each ball of rice into the breadcrumbs, then the egg, then the breadcrumbs again before carefully adding to the hot oil. Fry until golden brown, approximately 2 minutes, remove from oil and set on paper towels to drain. Repeat in batches of 3-4, making sure you do not overcrowd the pan.
Serve warm with creamy basil pesto dipping sauce.