Heat the oil in large non stick saucepan. Add the rice and stir it in so that it is well coated by the oil, add the water and bring to a boil.

Let the water reduce, cover and reduce the temperature to low, and cook for about 20 minutes.

Raise the heat to medium and cook stirring constantly for about 10 minutes more. Be sure the rice doesnu2019t burn or overcook. Scrape off the bottom with a spoon a wooden spoon.

If you want pegao cooked on top, put it into the oven at broil for 5 minutes, watching it closely. Served with a fried egg.