Place the rice, 2 cups of water, the coconut milk, sugar and the salt in a medium saucepan and stir to combine. Bring the rice to a boil, then reduce the heat to medium-low and simmer until the water has evaporated to just below the level of the rice and little holes begin to form on the surface, stirring occasionally so that the rice doesn't stick to the bottom of the pan and burn. Reduce the heat to the lowest setting, cover the saucepan and continue to cook until the rice is tender, 20 to 25 minutes.
Fluff the rice with a fork and stir in the raisins. Cover the saucepan and let it sit off of the heat until the raisins are plump and warm, 10 minutes. Sprinkle the rice with the toasted coconut and serve.