1. Heat the butter in a broad non-stick pan, add the onions and sauté on a medium flame for 1 to 2 minutes or till they turn translucent.
2. Add the capsicum and sauté on a medium flame for 1 to 2 minutes or till the capsicum becomes soft.
3. Add the rice, milk, cream, salt, pepper and ¼ cup of cheese, mix well and cook on a medium flame for 3 to 4 minutes, while stirring occasionally using a potato masher.
4. Pour the mixture in a baking dish and spread it evenly using a spoon and sprinkle the remaining 1/2 cup of cheese on top.
5. Bake in a pre-heated oven at 200°c (400°f) for 10 to 15 minutes. serve immediately.