Rinse the jasmine rice under cold water until the runoff is clear to remove excess starch.
Drain the rice well and place it in a medium saucepan.
Add the coconut milk, water, salt and sugar (if using) to the rice and stir to combine.
Let the mixture sit for 5 minutes to allow the grains to hydrate.
Bring the pot to a gentle simmer over medium heat, stirring once to prevent sticking.
Reduce heat to low, cover with a tight-fitting lid and cook undisturbed for 15–18 minutes.
Turn off the heat and let the rice steam, covered, for 8–10 minutes to finish cooking.
Fluff the rice gently with a fork to separate the grains.
Stir in coconut oil or lime zest if desired for extra aroma and sheen.
Transfer to a serving bowl, garnish with toasted coconut or cilantro, and serve hot.