Optional: 1-2 tablespoon toasted coconut for garnish
Lightly oil the bottom of a deep-sided pot that has a tight-fitting lid.
Use a sieve to rinse the measured rice with water to remove the excess starch.
Place rice, coconut milk, water, shredded coconut, and salt in the pot and set over medium-high to high heat. Stir occasionally to keep rice from sticking to the bottom of the pot.
Once the coconut-water has begun to gently bubble, stop stirring and reduce heat to simmer. Cover tightly with a lid and let simmer 15-20 minutes, or until most of the liquid has been absorbed by the rice.
Turn off the heat, but leave the covered pot on the burner to steam another 5-10 minutes, or until you’re ready to eat.
When ready to serve, remove the lid and fluff rice with a fork. Season with salt if needed. Top with a sprinkling of toasted coconut.
To toast coconut: Place 1 Tablespoon shredded coconut in a frying pan over medium-high heat and stir until light golden brown.