1In the top of a double boiler, combine rice, sugar, milk, and cinnamon. Stirring constantly, cook over lightly simmering water for 1 1/2 hours.
2Meanwhile, preheat oven to 300 degrees F (150 degrees C). Spread coconut evenly over a cookie sheet; bake for 5 minutes, or until just beginning to turn golden brown.
3Stir vanilla into rice pudding, and remove pan from heat. Divide into bowls, and top with toasted coconut. Serve warm, or chill if desired.