Rukbat,
There appears to be more than one way to get the job done. Obviously, the rice has to be uncooked and the container sealed after completely surrounding the (dried as much as possible w/o heat) phone, which ideally is broken down into its components, starting with the battery. In some cases, such as the (not a Galaxy) Razr M, even the battery can't be removed w/o tiny screwdrivers and such. Since I can't post links, here is the title to the piece from the Radio Shack tech forum. Nowhere does it so much as mention any sort of alcohol bath. Seems to me that if (Radio SHacks ) Tech Channel writes explicitly on resurrecting drowned phones using uncooked rice, then we're well past Internet rumor. I know of multiple cases in which a friend's phone had an unfortunate dip, to include a water-urine mix, yet still, using rice method (likely accompanied by a rinse for the water-plus scenario) got them all fully working.
"How to Dry a Cell Phone Out With Rice"
by Shawn McClain, Demand Media
Nor is Radio Shack alone in these views.
LifeHacker has a potent testimonial regarding a Blackberry immersed for 30 minutes which was raised from the dead via the rice method.
"Testimonial: Rice Resurrects Even the Most Soaked of Gadgets"
Jason Fitzpatrick
Here, Popular Mechanics wades in, concluding that rice is the general solution.
Popular Mechanics
"How to Save Your Wet Cellphone: Tech Clinic"
BY JOEL JOHNSON
Some of the above do opine/the commenters say that a rubbing alcohol bath can be useful for removing impurities resulting from, say, murky water immersion and for helping remove moisture from the phone. Not one of the recommends your preferred method as being the primary approach.