Thoroughly rinse the jasmine rice in cold water until the water runs clear. This helps to remove excess starch, resulting in fluffier rice.
In a medium saucepan, combine the coconut milk, water, salt, and sugar. Stir to dissolve the sugar, then bring to a simmer over medium heat.
Drain the rinsed rice and gently add it to the simmering coconut milk mixture. Stir once, then reduce the heat to low.
Cover the saucepan and cook the rice over low heat for 15-20 minutes, or until all the liquid is absorbed and the rice is tender.
Once the rice is cooked, remove from the heat and let it rest, covered, for another 10 minutes to allow the grains to fully soften.
Before serving, sprinkle with shredded coconut and gently fluff with a fork to make it airier.
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