Rinse the jasmine rice under cold water until the water runs clear. Drain well.
In a medium saucepan, combine the rinsed rice, coconut milk, water, and salt. Add sugar if using.
Stir well to combine. Bring the mixture to a boil over medium-high heat.
Once boiling, reduce the heat to low, cover the saucepan tightly, and simmer for 15-20 minutes, or until all the liquid has been absorbed and the rice is tender.
Remove the saucepan from the heat and let it stand, covered, for 5 minutes. Then, fluff the rice with a fork.
Serve hot as a side dish.
Notes
This coconut rice is best served fresh. You can garnish with toasted coconut flakes or sesame seeds for extra flavor and texture.