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In a medium-sized saucepan, with a lid, heat the oil over medium heat.
When the oil is warm add the mustard seeds swirling constantly, until the seeds start to pop, turn gray, and smell nice and toasty. *You may need to place the lid over the pot for this step because the seeds can pop like pop corn kernels.
Add the rice and stir until the kernels begin to turn translucent, about 2-3 minutes.
Stir in the carrots, strained tomatoes, water and season to taste with salt and pepper.
Bring to a boil, reduce heat to low, cover, and cook until the rice has completely absorbed the liquid. This step will take about 12-14 minutes.
Once all of the liquid has evaporated, turn off the heat and allow the rice to sit with the lid on for at least 10 minutes.