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Bring the rice to the boil in 2 litres of water and allow to cook for 7 mins. Rinse the rice in a colander with cold water. Leave to drain for 5 mins.
Meanwhile, put half the butter and the oil into a saucepan. Bring to a medium heat and add the rest of the ingredients, except the rice and the saffron. Slowly fry until fragrant, then stir in the drained rice. Using the end of a wooden spoon to make holes in the rice to allow the steam to rise. Dot the remaining butter on top of the rice and scatter over the saffron. Put the lid back on the pan, and cover with a tea towel to seal the steaming process. Turn off the heat and leave to steam for 30 mins – this makes the rice fluffy and separated without drying it out.