In a large covered pot, bring 8 cups water and salt to a boil. Add the rinsed rice and boil on high heat uncovered for about 7-8 minutes, or until the rice has slightly softened.
Drain the rice in a colander and set aside.
Heat the oil in a non-stick pot over low heat.
In a small bowl, mix 1 cup of the lightly cooked rice with the turmeric and water, gently mix and spread evenly in the bottom of the pot. This will be the crispy rice referred to as Tahdig.
Begin by layering one third of the partially cooked rice and then one third of the butternut squash mixture into the pot. Repeat until all of the rice and squash have been layered in the pot. Either leave the rice and squash in layers, or mix them gently.
Wrap the lid with a clean towel and place on top of the pot. Allow the rice to steam over a medium-low to medium heat for about 45 minutes.
Remove the pan from the heat and allow to rest for 5 minutes.