I've got no idea where this recipe came from! You could possibly leave out the oil if you really wanted to, but I've never tested it like that. Considering how high in fat coconut is, I don't think it would make a huge amount of difference to the nutritional values.
Wash and drain the rice. Heat the oil in a large pan, then add the mustard seeds and lentils, and cook until the seeds pop. Add the rice and cook, stirring, until the rice is transparent and the lentils have turned pale yellow.
Add the coconut along with 450ml (16fl oz, 2 cups) water. Bring to the boil, then place the lid on tightly. Reduce the heat to low, and leave for about 40 minutes until the rice is done.
If you don't take the lid off, and the heat is kept low, then the rice shouldn't stick and you'll end up with perfectly dry rice. If your nerve fails you, and you feel you have to check, some of the steam will come out, so put a little more boiling water in.
Kake's (Vegan) Cookery Site - http://www.earth.li/~kake/cookery/
This page added 17 Apr 1998 - comments and questions to Kake L Pugh (firstname.lastname@example.org).