Heat broth and water in 2-quart saucepan; set aside.
Meanwhile, melt butter in 4-quart saucepan over medium heat and cook rice, stirring frequently, 3 minutes. Slowly add 1-1/2 cups heated broth mixture, stirring constantly. Cook over medium-low heat, stirring constantly, until broth is absorbed. Continue adding broth, 1 cup at a time, stirring frequently, until rice is slightly creamy and just tender. Stir in remaining ingredients; heat through.