Combine coconut and rice in a blender. Add 2 cups boiling water; let stand 15 minutes. Blend 1 minute or until smooth. Strain mixture through a fine sieve or cheesecloth into a pitcher, pressing mixture with the back of a spoon to remove as much liquid as possible. Discard solids. Stir in remaining ingredients, stirring until sugar dissolves. Serve over ice.
For toasted Coconut: Place coconut in a thin layer on baking sheet and bake in preheated 325 degree oven for 5 minutes.The coconut will toast quickly, be sure to stir to ensure even color.