Chop onion, garlic, and pepper. Rinse rice in strainer.**
Place oil in large frying pan (enough to fully cover the bottom) and heat to medium. Place water in a medium pot and set to high to bring to boil.
Add seasoning, garlic, onion and pepper to pan, stir together, and sauté until onion starts to become translucent.
Add rice to mixture and stir until all rice is orange. Continue to cook (about 5 minutes), stirring often. Do not let the rice burn—the goal is to lightly toast the grains.
Add the toasted mixture to boiling water, reduce heat to low, cover, and simmer for 20 minutes. Because you are steaming the rice, you do not remove the lid until the 20 minutes is up.
Remove from heat. Fluff before serving if desired.