In a large skillet heat the olive oil over medium heat.
Saute the onions, garlic and red pepper until soft.
Add the rice and saute for about 4 – 6 minutes.
Add the water, tomato sauce and green chilis and bring to a boil.
Reduce heat to low, cover and cook for about 20 minutes, or until the liquid has been absorbed. Try not to stir the rice while it is cooking or it will become mushy.
Salt and pepper to taste.
Garnish with the fresh chopped cilantro and serve!