Melt the butter in a dutch oven over medium-high heat. When the butter has melted add the onion and mushrooms and cook, stirring often, until onions are softened and mushrooms are well browned, about 6 minutes.
Stir in the rice, garlic, 1/2 tsp salt, and 1/4 tsp pepper and cook while stirring for about 1 minute.
Stir in the water and bring to a boil.
When the water begins boiling put the lid on the dutch oven then place in the preheated oven and bake for 1 hour.
Take the dutch oven out of the oven and set aside to rest for 10 minutes, keeping the lid on.
After the 10 minutes remove the lid and fluff the rice with a fork. Season with additional salt & pepper to taste.
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