1. Rub oil over the bottom of a deep-sided pot. Note: the pot will need a tight-fitting lid. Place rice, coconut milk, water, and salt in the pot. Place pot on the stove over medium to high heat. Stir well. Add the sugar and flavoring, if using. Continue to stir occasionally until the coconut milk & water come to a gentle boil (stirring will keep the rice from sticking to the bottom of the pot and burning).
2. Once the coconut-water has begun to gently bubble, stop stirring and turn down the heat to medium-low (around 2.5 on the dial). Place lid askew on the pot, allowing some of the steam to escape. Cook in this way for 15-20 minutes, or until the rice has absorbed all (or nearly all) of the coconut-water.
3. Now turn off the heat, but leave the pot on the burner. Cover the pot tightly with the lid and allow to rest 5-10 minutes, or until you are ready to eat. The rice will "steam" and have a nice, slightly sticky texture). Tip: Your Coconut Rice can stay warm this way for up to 1 hour. When ready to serve, remove the lid and "fluff" rice with a fork or chopsticks. Serve right out of the pot, or place in another bowl or container together with a rice scoop for serving. ENJOY!