Lydia's Coconut Rice

1 1/2 cups well-stirred canned unsweetened coconut milk
1/2 cup water
1 teaspoon salt
1 cup long-grain white rice
Garnish: sweetened flaked coconut, toasted

In a small saucepan bring coconut milk, water, and salt to a boil and stir in rice. Reduce heat to moderately low and simmer rice, covered, until most of liquid is absorbed, about 15 minutes. Remove pan from heat and let rice stand, covered, 5 minutes. Serve rice sprinkled with coconut.