Begin by rinsing the rice in a fine mesh sieve under cool running water until it runs clear.

In a medium saucepan, melt the butter over medium heat and sauté the diced onion until softened.

Add the rinsed rice to the saucepan, stirring with the onions. Then add broth, milk, paprika, salt, and pepper.

Increase the heat until the mixture simmers, then cover and reduce the heat to low. Cook undisturbed for 18-20 minutes.

After 18-20 minutes, let it sit for an additional 5 minutes without lifting the lid.

Fluff the rice with a fork and stir in the cheddar cheese until melted and creamy.