Place the rice in a bowl then wash and drain it. Place enough water to cover and soak for a few hours ... one hour at the very least, overnight at most. Note, that the longer you soak it, the better the rice will cook later.
When you are ready to cook, drain the rice and set aside.
Place the coconut milk and water in a saucepot, set the heat to medium and simmer.
Add the drained rice and stir often to be sure the rice does not burn along the sides of the pot. Continue to cook over medium heat and mixing until the rice has soaked up most of the liquid. Using a large wok makes it easier to mix.
Reduce the heat and add the white sugar and salt to the rice mixture and mix. Make sure the sugar and salt are completely mixed into the rice. You will notice that the rice where the sugar gets mixed in becomes shinier so keep mixing gently. This will take around 10 to 15 minutes, more or less.
Taste the rice every now and then to make sure it is cooked all the way through. You know you are done when the rice mixture is sticky and clumps but separates from the pot easily.