Coconut Rice Custard

1 13.5oz can unsweetened coconut milk
1/4 cup water
1/4 cup plus 2/3 cup sugar
1 cup long-grain white rice
3 cups half-and-half (I used powdered milk, and added a little more powder to make it creamy)
5 eggs
1 teaspoon vanilla

Heat oven to 325F. Bring coconut milk, water, and 1/4 cup of the sugar to a boil in a small saucepan. Stir in the rice, then reduce heat, cover, and simmer gently until the rice is tender and the liquid is absorbed (about 20 min). Meanwhie, warm the half-and-half in a small saucepan over medium heat, but do not allow to boil. Whisk together the eggs, vanilla, and remaining sugar, and pour the warm half and half into the eggs mixture, whisking constantly. Skim off any foam that rises, and stir in the rice. Transfer to an 8x8 baking dish, then place that dish into a large roasting pan or baking dish and put in the oven. Add enough hot water to the larger pan to reach halfway up the sides of the smaller dish. Bake until custard is set (about 1 hour). This is good served warm or cold!