Rinse the rice under cold water until the water runs clear to remove excess starch.
In a medium saucepan, heat the olive oil or butter over medium heat. Add the chopped onion and sauté until translucent, about 5 minutes.
Stir in the minced garlic and sauté for an additional minute until fragrant.
Add the rinsed rice to the saucepan, stirring to coat the grains in oil. Cook for 2-3 minutes to allow the rice to toast slightly.
Pour in the broth, add the bay leaf, salt, and pepper. Bring the mixture to a boil.
Once boiling, reduce the heat to low and cover the saucepan with a lid. Let it simmer for 15-18 minutes until the rice absorbs the liquid and is tender.
Remove the saucepan from heat and let it sit covered for an additional 5 minutes.
Fluff the rice with a fork, removing the bay leaf. Stir in the chopped nuts and raisins or dried cranberries if using.
Taste and adjust seasoning if necessary. Garnish with fresh parsley before serving.