Crush the saffron into
Heat the olive oil in a heavy-bottomed pan. Add the onion, cover and cook slowly for 3 to 5 minutes, or until the onion becomes transparent. Add the rice and stir over a low flame until all the grains are coated with oil. Add the dissolved saffron and 2 cups hot water and stir. Add nutmeg, bay leaves, salt, and pepper. Bring to a boil, then reduce the heat and simmer, covered, for 15 minutes. All the liquid should be absorbed and the rice tender. Fluff the rice with a fork and remove the bay leaves. Just before serving, add a dash of olive oil and check the seasoning again.
You can keep this warm over simmering water until ready to serve.
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