Moors and Christians Rice (White Rice and Black Beans): Moros y Cristianos

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The beans:

1/2 pound black beans

12 cups water

1 medium Spanish onion, peeled

1 medium green pepper, cored and seeded

6 cachucha peppers (available in Hispanic markets)

The rice and beans:

3 tablespoons extra-virgin olive oil

1/4 pound slab bacon, finely diced

3 garlic cloves, finely minced

1 medium Spanish onion, finely chopped

1 medium green bell pepper, finely chopped

1 teaspoon cumin powder

1 teaspoon oregano

1 bay leaf

2 cups long grain rice

4 cups reserved liquid

1 tablespoon vinegar

1 tablespoon dry sherry

2 teaspoons salt