Homemade Mexican Rice

I made this rice to go along with Jessica's Stuffed Taco Shells recipe and it went great together.

Mexican Rice
2 tablespoons butter
1 1/2 cups long grain rice
1/2 cup chopped onion
1/2 cup chopped green bell pepper
1 clove garlic
2 cups water
1 (14 1/2) can diced tomatoes with green chiles
1 teaspoon chili powder
1 teaspoon salt
1 cup shredded cheddar

1. In a large sausepan, melt the butter over medium heat. Add the rice, onion, peppers, and garlic. Cook until the rice is browned and vegetables are tender. Stir in the water, tomatoes, chili powder, and the salt and bring to a boil. Reduce the heat and simmer, covered, until the rice is tender, about 17 minutes. Stir in the cheese and transfer to a serving bowl.