Preheat your oven to 350°F. This is the kind of recipe that reminds me why engineering precision matters in cooking - the timing here is critical.
Grease a 2-quart casserole dish with butter. Combine the rice, water, diced onion, salt, and pepper in the dish. Dot the top with remaining butter pieces. (The onion will steam perfectly in this method, creating little pockets of sweetness throughout the rice)
Cover tightly with a lid or aluminum foil and bake for exactly 30 minutes. No peeking - the steam needs to stay trapped for proper absorption.
Remove from oven and let stand, still covered, for 5 minutes. Fluff with a fork before serving.
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