Rinse the rice under cold water until the water runs clear.
Place all ingredients in a pan and bring to a boil. Cover the pan and continue to boil for 5 minutes.
Reduce the heat to the lowest setting and continue to cook for 10 minutes or until all the liquid has been absorbed. Make sure to keep the pan covered.
Turn off the heat and let the rice sit in the covered pan for a further 10 minutes.
Remove the lemongrass, bay leaf and kaffir lime leaf and serve.