For the cooking liquid, place the cinnamon stick and cloves in a dry, deep saucepan over medium heat and toast for 1-2 minutes, until fragrant. Add the coconut milk, 100ml water and the bay leaf, lemongrass, ginger, nutmeg, and lime leaves. Bring to a simmer, then remove the pan from the heat and leave aromatics to infuse for 30 minutes.
Rinse the rice until the water runs clear. Add the rice to the simmered coconut milk along with salt.
Place the pan over medium heat and bring to a gentle boil, stirring once so the rice doesn't stick to the base of the pan. Turn the heat down to low, cover with a lid. Simmer for 15 minutes, then remove from the heat. Leave for 10 minutes, covered, to finish off the cooking.
When ready to serve, remove the lid from the pot then discard the lemongrass, cinnamon stick, bay leaf and lime leaf. Fluff the grains of the rice with a fork.
To serve, stir a drizzle of shallot oil or sesame oil through the rice and stir. Top with a handful of fried shallots and coconut chips.