Rinse the jasmine rice under cold water until the water runs clear.
In a medium saucepan, combine the rinsed rice, coconut milk, and water.
Add sugar and salt to the mixture.
Bring the mixture to a boil over medium heat.
Once boiling, reduce the heat to low and cover the pot with a lid.
Simmer for 15-18 minutes, or until the rice is tender and the liquid is absorbed.
Remove the saucepan from heat and let it sit for 5 minutes, still covered.
Fluff the rice with a fork to separate the grains.
Optionally, stir in shredded coconut for added texture.
Serve hot, garnished with fresh herbs or additional coconut if desired.