Well for a start, in your reference frame you are already seeing the light travel at a speed less than $c$, so you shouldn't expect your friend to see the beam at $c$.
The crux of this question is "How is light slowing down?" Answer: it's not. That is, there is never a photon which travels at a speed less than $c$. Hence if you were to look at any individual photon, it would have the speed $c$. However, as the photon travels through the material, it is able to interact with the material. It could for example be absorbed, and re-emitted, with a small delay between the two events. It's this small delay that makes it appear as though light is travelling slower. Really the beam travels at $c$, but it occasionally makes pit-stops along the way.
An analogy would be, if I could run at some velocity $v$, along a street with a a length $L$. But let's say there are donut shops along this street, and everytime I come across a donut shop, I am compelled to go in, and buy a donut, before resuming running at $v$. Then if it takes me $\tau$ time in a donut shop, and there is a density of donut shops $\sigma$, my travel time will now be $L(\sigma\tau +1/v)$. So although I never travel at a speed other than $v$, it's taking me a longer time to get along the street, giving me an effective speed of $$v_{\text{eff}}=\frac{1}{\sigma\tau +1/v}=\frac{v}{v\sigma\tau + 1},$$
where you can see the effective speed must be smaller, as $\sigma\tau > 0$. Identifying ${v \sigma \tau + 1}=n$, you can compare this to the case for light.
Returning to your question now, if your friend saw any photon, it would have a speed $c$. However by moving at the effective speed, he would be see the regions of the material that were absorbing and re-emitting as stationary. This is sort of like saying every time I went into a donut shop, he would be there beside the shop, but when I got out, I would travel at my unimpeded speed.$^{12}$ Then when I was in the next donut shop, he would catch up, until he was right there beside me again.
$^1$Donut running analogy does break down a little, as he running next to me of course wouldn't measure me as travelling at $v$, because my velocity is not the same in all reference frames, but he could tell when I was travelling at my unimpeded velocity, $v$.
$^2$Note in the material, the refractive index is a statistical treatment of a many d.o.f. system.