In a small, deep pot heat oil on lowest. Add rice, and simmer for 5 minutes.
Add 3 cups water and spices. Mix well. Cover the pot ¾ of the way. Raise the temperature to medium and cook for 15 to 20 minutes, stirring every few minutes.
When there is still a little bit of water left on top (about the thickness of one finger), turn off the heat. Add butter and stir well. Cover the pot all the way and leave for 3-4 minutes.