Rinse rice with 2-3 changes of cold water and drain. Add rice to pan or use rice cooker. Add water and coconut milk and season with salt and pepper to taste.
If cooking on the stove: Bring everything to a boil, reduce heat to simmer, cover and cook until done (about 20 minutes) or use package cooking directions,
In Rice cooker: Combine all ingredients in rice cooker, close lid, cook using white rice setting.
Fluff rice with fork when done and serve.