Preheat the oven to 350°. Spread the coconut on a baking sheet and toast until golden, about 3 minutes. Let cool.
In a large saucepan, cover the basmati rice with the water, add the salt and bring to a boil. Cover and simmer until the rice is tender and the water is absorbed, about 12 minutes. Spread the rice on a baking sheet and let cool slightly.
In a large, deep nonstick skillet, heat the olive oil until shimmering. Add the cashews and cook over moderately high heat, stirring constantly, until lightly toasted, about 1 minute. Stir in the rice and cook until heated through. Transfer the rice to a large bowl, garnish with the toasted coconut and serve.