HEAT olive oil in a medium saucepan over medium high heat.
POUR rice in hot oil and stir to coat.
STIR the rice frequently as it toasts and begins to brown. Take care to not let it burn.
ADD the onions and peppers to the browning rice and stir for 3 to 4 minutes, or until the onions and peppers begin to soften.
As the rice toasts, MEASURE the water and then add the tomato sauce, salt, chili powder, paprika, garlic powder, coriander, and cayenne pepper to the liquid. Stir to combine.
POUR the water/tomato sauce mixture over the rice after the rice is toasted and the onions, and peppers are soft. DO NOT STIR. When the liquid starts to boil, place the lid on the pan and turn the heat to low.
COOK on low (without stirring or removing the lid) for 20 minutes. Check to see if the rice has absorbed all the liquid. If not, replace the lid and cook for a few minutes longer. During this time, do not stir the rice.
REMOVE the pan from the heat when the rice has finished cooking.
SPRINKLE juice from half a lime over the rice. Give it a quick stir to combine.
REPLACE the lid and let the rice rest off-heat for 5 minutes.
SPOON the rice into a serving dish and garnish with fresh cilantro or lime slices. Serve immediately.