Place the rice in a fine mesh sieve and rinse under cold water, using your hands to gently massage the rice. This will remove excess starch from the rice.
In a medium saucepan, add coconut milk and water and stir with a whisk.
Add the rinsed rice, sugar and salt. Heat over medium-high heat until it comes bring to a boil.
Once it starts to boil, adjust the heat to low and stir the rice.
Cover and simmer for 15 minutes. Do not remove the lid.
Remove pan from heat and allow to sit, covered, for 10 minutes.
After the 10 minutes, remove the lid, add lime juice, and fluff the cooked rice.
Serve warm, topped with coconut flakes and parsley. Serve with lime wedges.