Over medium heat, cook onion for 5 minutes in olive oil. Add garlic and stir, cooking for another minute or two. Don’t let the garlic brown!
Stir in rice, mix well, and immediately pour in the broth and water. Cover and turn the heat to high until the mixture boils. Lower heat but do not remove the lid. Cook for 25 minutes at a gentle simmer.
If you are using frozen peas, soak them in warm water for a few minutes to defrost them while the rice cooks. Drain the peas, add them to the cooked rice and stir in the Parmesan. Sprinkle with nutmeg and serve.
Adapted from Everybody Cooks Rice by Norah Dooley