Pour all of the ingredients into a small pot set over high heat, electric stove setting 8.
Bring to a rolling boil, stirring often.
Let boil over high heat for 2 minutes.
Turn the heat down to low, electric stove setting 2.
Continue cooking for 1 minute, stirring often.
Cover and cook for an additional 20 minutes. Do not lift the lid at all throughout these last 20 minutes of cooking time.
Remove from heat, and let sit for at least 5 minutes, but up to 20 minutes. This allows all of the steam to escape, resulting in perfect rice that's soft and fluffy.
Uncover, and stir gently around the pot to loosen the rice before serving.
Serve immediately, or let cool completely and cover and refrigerate for up to 2 days.
You can also use chicken, vegetable or beef broth to make perfect rice on the stove. However, it may be too salty for your tastes and the extra additives in the broth may leave an unpleasant taste in the finished rice. That's why I always think it's best to just use plain water when making rice.