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Place butter in a 5-qt. saute pan and set over medium heat. Add the chopped onions and sauté for 2-3 minutes. Add the rice, Old El Paso Green Chiles, Old El Paso Red Enchilada Sauce, and 3 cups of water.
Stir and cover the pan. Bring to a boil. Set the heat to low and simmer. Cook for 20 minutes, stirring every 5 minutes. Keep covered in between stirs.
Once the rice is cooked through, add one more cup of water and the shredded cheese. Stir and cook another 2-3 minutes until the rice is tender. Garnish with cilantro or scallions and serve warm.