Add the coconut milk and water to a medium-sized sauce pot and bring it to a boil over high heat.
In the meantime, add the rice to a medium-sized saucepot over medium heat and toast the rice while constantly stirring for 4 to 5 minutes. The rice will go from cloudy in color to white, but not browned in any way.
Once the liquid is boiling, stir it into the toasted rice and bring it to a boil.
Stir the rice, place on a lid, and simmer over low heat for 12 to 14 minutes or until the rice is cooked.
Turn off the heat, remove the lid, and break up the rice using a fork. Let the rice stand for 3 to 4 minutes.
Serve the rice with an optional garnish of toasted coconut.
Notes
Make-Ahead: You can make this recipe up to 30 minutes ahead. Keep it warm by keeping a lid on it until ready to serve.How to Store: Once cooled, cover and keep in the refrigerator for up to 4 days. Cover and freeze it for up to 3 months. Thaw it in the refrigerator for 1 day before reheating.How to Reheat: I find that the best way to reheat rice is in the microwave. It keeps it light and fluffy, and you do not need to add anything.When you add the hot liquid to the pot of rice, it will bubble up the pot quite a bitYou toast the rice to make it cook quicker and to help prevent it from clumping and overcooking.For a twist, turn any leftover coconut rice into rice pudding.