Cut Monterey Jack into strips. Mix sour cream and chilies. Butter 1 1/2 quart casserole well. Season rice with salt and pepper.
Layer 1/2 the rice, sour cream mixture, and monterey cheese strips in that order. Finish off with the other half of rice on top. Bake at 350 degrees for 30 minutes. During last minute, sprinkle with Cheddar cheese and allow it to melt.