Put coconut milk into a saucepan and bring to a boil on low heat.
In a bowl, combine sugar and cornstarch. Add water; blending well.
Add cornstarch mixture to coconut milk. Stirring frequently with wire whisk, cook over medium heat until mixture thickens. Continue cooking until mixture starts to get translucent, and leaves the sides of the pan.
Pour into bowls and chill until firm.
Also makes AWESOME fruit dip - just stir after refrigerating...my daughter and I LOVE this stuff!!!