Ingredients:

  Amount  Measure       Ingredient -- Preparation Method
--------  ------------  --------------------------------
  25                    saffron strands
     1/2  cup           hot water
   2      tablespoons   olive oil
   1 1/2  cups          basmati rice
   2 1/2  cups          water
                        salt -- to taste

Preparation:

Soak the saffron in the hot water for 10-15 minutes. Put the rice in a strainer and rinse under hot water until it runs clear. Then rinse again under cold water and leave to drain. Heat the oil in a saucepan and add the rice. Sauté until it becomes translucent. Add the remaining amount of water and salt, bring to a boil, and add the saffron infusion. Stir, cover tightly, and leave to simmer on a very low heat (preferably on a heat diffuser) - for about 20 minutes, until craters from on the surface. Stretch a piece of cheesecloth or a dish towel over the top, cover tightly with a lid, and leave in a warm corner to rest for 10-15 minutes. The cloth will absorb the steam from the rice and allow the grains to separate. Source: Recipe from a Greek Island - by Susie Jacobs ISBN: 0-671-74531-X