Heat the oil in a large nonstick skillet over medium heat, and sauté the onion and garlic until golden. Add the rice, and cook for 3 minutes, stirring constantly. Each grain should be golden.
Mix the parsley, rosemary, and saffron in the water. Pour 1/2 cup into the rice mixture. Cover and simmer gently. Gradually add the remaining 1 1/2 cups water as the liquid is absorbed. Just before the rice is done, about 15 to 20 minutes, add 1/4 cup of the cheese. When the cheese is melted through, remove from the heat. Top with the remaining 1/4 cup cheese.