1. Wash the rice in cold water until it runs clear. Place the water, coconut milk, salt and sugar in a heavy-based saucepan or flameproof casserole.
2. Add the rice, cover and bring to the boil. Reduce the heat to low and simmer for about 15-20 minutes or until the rice is tender to the bite and cooked through.
3. Turn off the heat and allow the rice to rest in the saucepan for a further 5-10 minutes.
4. Fluff up the rice with chopsticks or a fork before serving garnished with shredded coconut.