Grease a 9x13-inch baking dish with butter or nonstick spray.
In a large bowl, mix cream of mushroom soup with milk, water, and onion soup mix until smooth.
Spread uncooked white rice evenly across the bottom of the prepared baking dish.
Pour the creamy soup mixture over the rice and gently shake to distribute.
Place the chicken breasts on top, pressing down slightly. Season with paprika, salt, and pepper.
Cover the dish tightly with aluminum foil and bake for 45 minutes.
After 45 minutes, uncover the dish and sprinkle shredded cheddar cheese on top. Bake uncovered for an additional 15 minutes until the cheese is bubbly and golden.
Let the casserole sit for 5-10 minutes before serving. Garnish with chopped parsley if desired.
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Notes
Store leftovers in an airtight container in the refrigerator for 3-4 days. Can be frozen for up to 2-3 months.