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Fry the onion in the oil in a large skillet over medium heat, stirring often, until soft and golden.
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Add the tomatoes, sugar, basil and a little salt and cook until the liquid has almost disappeared.
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Add the rice, stir well, then add the stock. Stir in the saffron, salt and pepper to taste, and bring to a boil, then simmer over low heat for about 15 minutes, until most of the liquid has been absorbed but the rice is still underdone.
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Retaining the stalk, cut a circle around the stalk off the tops of the peppers, and keep these to use as caps.
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Remove the cores and seeds with a knife or spoon and shave the inside of the lids to make more room for the filling.
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Using a spoon, fill the peppers with the rice without pressing it down too much, so that there is a little room for it to expand.
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Replace the caps and arrange the peppers snugly in a baking dish.
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Pour the tomato sauce around the peppers, cover with a sheet of foil and bake in a preheated 400 degree oven for 1 hour.
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Remove the foil and continue to bake for another 15 minutes, or until the peppers are soft and have browned on top; be careful not to let them fall apart.
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Serve hot!