Using a strainer, drain excess liquid from can of diced tomatoes into a liquid measuring cup* and set tomatoes aside. KEEP the excess liquid. Add tomato sauce and chicken broth to the liquid measuring cup, and then add water until you have 3 ¾ cups of liquid with all together. Set aside.
In a sauce pan, melt butter on medium heat. Add diced onion to the pan and cook until translucent, stirring often (3-4 minutes). Add garlic, chili powder, cumin, paprika, sugar, and salt to pan, mix together with onions and cook until aromatic (1-2 minutes). Add rice, fully coating in spices.
Add tomatoes and liquid that was set aside (step 1), and mix well. Turn heat up to high and bring to a rolling boil.
Once boiling, cover with lid and turn heat to simmer. After 20-25 minutes (once rice is cooked through and there isn't any remaining liquid), remove from heat and fluff with a fork, add some cilantro. Enjoy!
Notes
*Use a liquid measuring cup that holds at least 4 cups.