1Rub oil over the bottom of a deep-sided pot. You will also need a tight-fitting lid.
2Place 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 and burning.
3Once the coconut-water has begun to gently bubble, stop stirring and reduce heat to low (just above minimum). Cover tightly with a lid and let simmer 15-20 minutes, or until most of the liquid has been absorbed by the rice. To check, pull rice aside with a fork. If most of the coconut milk-water is gone, go on to the next step.
4Replace the lid and 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. Tip: Your Coconut Rice will stay warm this way for up to 1 hour or more, great for when you're expecting company!
5When ready to serve, remove the lid and fluff rice with a fork or chopsticks. Taste-test the rice for salt, adding a little more if needed. Serve right out of the pot, or transfer to a serving bowl. This rice is excellent served with a variety of both Thai and Indian dishes, such as curries or seafood recipes. ENJOY!