In a 2-quart saucepan cook onion in hot margarine or butter until onion is tender. Add the uncooked rice. Cook and stir over medium heat about 5 minutes or until the rice is lightly golden.
Meanwhile, in another saucepan combine water and broth; bring to boiling. Reduce heat until mixture just simmers. Slowly and carefully add 1 cup of the broth mixture to the rice mixture, stirring constantly. Continue to cook and stir over medium heat until liquid is absorbed. Add another 1/2 cup of the broth mixture to the rice mixture, stirring constantly. Continue to cook and stir until liquid is absorbed. Add the remaining liquid, 1/2 cup at a time, stirring constantly until the liquid is absorbed and rice is just tender. (This will take about 25 minutes total.)
Cook and stir until the rice is slightly creamy and kernels are tender. Stir in peas, the 1/4 cup Parmesan cheese, mozzarella or Muenster, and herbs; heat through. Serve immediately. Pass additional Parmesan cheese. Makes 6 to 8 side-dish servings or 4 main-dish.