Cheesy Spanish Rice

I originally found this recipe in a Good Housekeeping cookbook, but have modified it over the years to suit our family's taste. It goes great with just about any chicken, beef or pork -- I just pop this in the oven and make the rest of the meal while it is baking.

• Ready In: 1 hr
• Serves: 6

Ingredients

• 4  bacon, slices
• 1⁄2 cup  diced green pepper
• 1 1⁄4 cups  chopped onions
• 1⁄4 teaspoon garlic powder
• 1⁄4-1⁄2 teaspoon cayenne pepper (optional) or 1⁄4-1⁄2 teaspoon chili powder (optional)
• 1 (16 ounce) can  best quality plum tomatoes
• 1 (8 ounce) can tomato sauce
•  chicken broth
• 2  teaspoons sugar
• 1⁄2 teaspoon salt
• 1 1⁄3 cups long-grain rice
• 3⁄4 cup  shredded cheddar cheese

Directions

1. Preheat oven to 350 degrees F. In large skillet, fry bacon until crisp; drain on paper towels; crumble and set aside. Pour off all but 2 tablespoons bacon drippings.
2. In hot drippings, cook onions and green pepper until tender, stirring often, about 10 minutes.
3. Into measuring cup, drain tomatoes; add enough chicken broth to the tomato liquid to make 1 3/4 cups. Cut up tomatoes.
4. To onion mixture, add chicken broth liquid mixture, tomatoes, tomato sauce, garlic powder, sugar, salt -- and, if using -- cayenne or chili powder. Heat to boiling. Grease a 1-1/2 quart casserole.
5. Remove mixture from heat and stir in rice; pour into casserole. Cover and bake 35 minutes or until rice is tender and liquid is absorbed. Stir lightly with fork. Sprinkle with cheese and bake uncovered for 5 minutes. Garnish with crumbled bacon and serve.