This is the way to make Spanish rice just like from a Mexican restaurant. I got this recipe from my latin friend after helping with countless barbecues and parties. This is the way her family has made it for years.
Heat the butter or oil in a skillet on medium heat. When hot, add rice to skillet and let get nice and toasty not burnt, have water ready and just as the rice starts giving off a toasted smell add the water to the pan.
It will sizzle; as it's sizzling, add the tablespoon of tomato bouillon to the skillet and stir. Cover with a lid and let cook just like you would normally, (about 20 minutes).
That is all there is to it, very simple and very easy. You could also add about a 1/4 cup of diced up carrots, corn or green beans if you choose to do so, while the rice is cooking.
*Tomato bouillon can sometimes be found in the ethnic aisle of your local supermarket. If you can't find it there, then try a Mexican market and they should have it.