Preheat the oven to 350 degrees F.
In a saucepan, bring the beef broth and water to a boil. Add the rice, bring to a boil again, reduce heat, and simmer covered for 25 minutes. Drain any liquid remaining. Add 1/2 cup of the butter and hot sauce and stir; fluff with a fork.
Saute the drained oysters in 1/4 cup of the butter over medium-high heat until the edges curl, approximately 3 to 5 minutes. Remove the oysters with a slotted spoon; set aside. Place half of the rice in a greased 13 by 9 by 2-inch baking dish. Cover it with oysters and sprinkle with hot sauce and salt and pepper, to taste. Top with the remaining rice.
In a saucepan, heat the mushroom soup over medium heat. Add the half-and-half, onion powder, and garlic salt. Pour over the oyster mixture. Bake for 35 to 40 minutes, until golden brown and bubbling. Garnish with parsley and red pepper flakes.
Recipe courtesy of Paula Deen, 2007