Drain fruit cocktail, reserving liquid. Add enough water to make 1 cup. Place liquid in a 1 1/2 quart casserole. Cover with wax paper. Microwave at high (100%) until liquid boils, 2 1/2 to 3 minutes. Stir in rice and sugar. Cover. Let stand 10 to 12 minutes. Stir in fruit cocktail and nuts. Chill. Just before serving, fold in Cool Whip. Makes 6 servings.