Preheat the oven to 325. Lightly oil a medium casserole dish with a lid.

Place the rice in prepared casserole dish. Stick the onion with the cloves and place in the center of the rice. In a small saucepan, bring water, butter and salt to a boil. Pour over rice and cover casserole dish. Bake one hour.

If rice is not dry and fluffy, remove onion and cloves, fluff rice with a fork and return to the oven for 5 more minutes, uncovered.