Authentic Spanish Rice Recipe

In a 2-quart saucepan over medium-high heat, fry bacon until crisp. Drain bacon on paper towels; set aside. Discard all but 2 tablespoons of the drippings. To saucepan, add water, rice, onion, chili powder, salt, sugar and paprika. Stir and bring to a boil; reduce heat to low, cover and simmer for 20 minutes or until rice is done. Stir in stewed tomatoes with juice, tomato paste and half of the reserved bacon, chopping up tomatoes with a spoon. Cook until heated through. Spoon rice into a heated serving dish. Sprinkle with remaining bacon and parsley.