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Bring the basmati rice, 2 cups water, and 1/4 tsp salt to a boil in a medium saucepan over high heat. Reduce the heat to low, cover, and cook until the water is fully absorbed and the rice is tender, about 15 minutes. Remove from heat and let stand, covered, for 5 minutes.
Heat the coconut oil in a large pot or Dutch oven over medium heat until shimmering. Add the onion and cook, stirring occasionally, until softened and translucent, about 5 minutes.
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