Rinse the rice under cold water with the help of a sieve or fine mesh strainer until the water is clear. Next, use your hands to massage the rice gently. While doing this, the agitation will help remove more starch from the rice.
COOK RICE:
In a small saucepan, add the coconut milk and the water, and using a whisk, mix well until combined.
Add the rinsed rice, sugar, and salt and bring to a boil.
At this point, turn down the heat to low and give a last stir of the rice.
Cover and simmer for 15 minutes. Do not remove the lid.
After 15 minutes, do not lift the lid; just turn off the heat and allow it to sit for 10 minutes.
After the 10 minutes are up, remove the lid and give it a good stir.
FINISH AND SERVE:
Transfer the rice to a serving dish and garnish with the toasted coconut and parsley. Serve with lime wedges.
Notes
If you don't know how to toast coconut, you can find out how with my tutorial here.