Rinse the rice under cold water until the water runs clear.

In a medium-sized saucepan, combine the rice, coconut milk, water, and salt.

Place the saucepan over medium heat and bring the mixture to a gentle simmer. Stir occasionally to prevent sticking.

Cook for 20-25 minutes, stirring frequently, until the rice is tender and the mixture thickens.

Stir in the sugar and vanilla extract, cooking for another 5 minutes until the sugar dissolves.

Remove from heat and let the pudding cool slightly.

Pour the pudding into individual serving bowls or glasses.

Garnish with shredded coconut if desired.

Serve warm or chilled, depending on your preference.