Rinsing the Rice: Start by rinsing the rice under cold water until the water runs clear. This removes excess starch and prevents the rice from becoming too sticky when cooked.
Soaking the Rice: Optional but recommended, soak the rinsed rice in water for about 15-20 minutes. This helps the rice cook more evenly and results in fluffier grains.
Cooking the Rice: In a pot or rice cooker, combine the soaked rice, coconut milk, water, and a pinch of salt. Cook the rice according to the instructions of your rice cooker or bring it to a boil, then reduce the heat to low, cover, and simmer until the rice is tender and all the liquid is absorbed, about 15-20 minutes.
Preparing the Tempering: While the rice is cooking, prepare the tempering. In a separate pan, heat coconut oil over medium heat. Add mustard seeds and let them splutter. Then, add urad dal, chana dal, green chilies, cashew nuts (if using), and curry leaves. Sauté until the dals turn golden brown and the cashews are lightly toasted.
Adding Shredded Coconut: Once the rice is cooked, fluff it with a fork and set aside. In the same pan with the tempering, add the shredded coconut and lightly toast it until fragrant and golden brown.
Mixing the Rice: Add the cooked rice to the pan with the tempered coconut mixture. Gently fold the rice until well combined and the coconut mixture is evenly distributed throughout the rice.
Final Seasoning: Taste the rice and adjust the seasoning with salt if needed. You can also squeeze a little lime juice over the rice for added flavor, if desired.