2. Heat a heavy nonstick skillet over medium high heat. Fry bacon 8 to 10 minutes, turning occasionally until crisp. Drain on paper towels. Crumble and set aside. Discard all but 2 tablespoons drippings.
3. Sauté onion and green peppers in same skillet 4 to 5 minutes until tender.
4. Drain juice from tomatoes into a large measuring cup. Add enough water to equal 1-3/4 cups. Chop tomatoes and add to onion mixture.
5. Stir in remaining ingredients, except rice and cheese, and bring to a boil. Remove from heat. Stir in rice and transfer to a lightly oiled 1-1/2 quart casserole dish.
6. Cover tightly and bake 30 minutes, or until rice is tender and liquid is absorbed. Fluff rice with fork. Sprinkle with cheese and bake another 5 minutes until cheese melts. Serve sprinkled with bacon.