Combine all but the rice and coconut milk in a heavy sauce pan.
When the water mixture boils, add the rice and coconut milk, stir, and loosely cover the pan so steam can escape. Simmer the rice for about 10 minutes, stirring occasionally until all the liquid is absorbed.
Cover the pan tightly and remove from heat.
Let it sit for about 10 minutes before transferring to a warm serving dish.
If you want, garnish it with a sprinkle of the toasted coconut.