Wash the rice under cold running water, then place it in a large bowl and cover with water. Leave to steep for 30 minutes, then drain well.
Heat the milk, clove, cinnamon stick, caster sugar and vanilla sugar in a heavy-based saucepan. Bring to simmering point. Add the rice, blend well, cover and cook over a low heat for 25 minutes.
Heat a nonstick pan and add the grated coconut. Stir well until it begins to turn golden.
Remove the clove and cinnamon stick. Divide the rice among small serving bowls. Let cool, then sprinkle with the toasted coconut.