Place rice in rice cooker. Add the water, coconut milk, salt, and sugar. Stir well (use a plastic or wooden utensil to avoid scraping off the non-stick surface). Cover and set to cook.

Once your rice cooker switches to "warm" mode, allow another 8-10 minutes for rice to finish steaming. This will ensure your coconut rice is fully cooked and pleasantly sticky. Gently fluff with chopsticks before serving. Serve your coconut rice with other Thai or Indian dishes.