Using a 10” lidded sauté pan, or Dutch oven, heat the vegetable oil. Add the peeled pearl onions, and brown for 3-5 minutes, they are browned and caramelized in spots. Add the rice, and brown for another 3 minutes, until the rice has turned opaque. Add the water, and season with salt and pepper. Cover, lower the heat to a medium simmer, and allow to steam for 25 minutes, until the rice is fully expanded and fluffy.
TIP: To peel the pearl onions, simply plunge all of the onions into boiling water for 30 seconds. Remove the onions from the water, cool, and then trim off the root end of the onion. The peel will slip off easily. Frozen pearl onions are already peeled, and can be substituted in this recipe, however the texture of frozen onions will be less firm, and they will not caramelize as nicely.