In a large saucepan, 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 salt and bring to a boil. Reduce the heat and simmer, covered, until the rice is tender, about 15 to 17 minutes. Stir in the cheese and transfer to a serving bowl.
Recipe courtesy Paula Deen (PBDB Collector's Issue 2009, pg. 90)