Grease a 9x13-inch baking dish. In a large bowl, whisk together cream of mushroom soup, milk, water, and onion soup mix until smooth.
Spread uncooked rice evenly across the bottom of the baking dish. Pour the creamy mixture over the rice.
Place chicken breasts on top of the rice mixture and season with paprika, salt, and pepper.
Cover the dish with aluminum foil and bake for 45 minutes.
Remove the foil, sprinkle cheddar cheese on top, and bake uncovered for an additional 15-20 minutes, or until the chicken is cooked through and the cheese is bubbly.
Let the casserole sit for 5-10 minutes before serving. Garnish with parsley if desired.
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Notes
Store leftovers in an airtight container in the refrigerator for up to 3-4 days. Reheat gently in the oven or microwave.