Phatch is right that achiote oil is the proper way to do it, and KK has a good substitute with turmeric. (I have made it that way many times and it tastes great and adds heath benefits of turmeric) However,I find aji amarillo powder http://www.amazon.com/Aji-Amarillo-Chile-Powder-18/dp/B000S15BMS and Ro*Tel to be great way to make it.
However, if you want the true way (at least as far as I'm aware)
Steep a small handful of Annato seeds in a neutral oil for 15-20 minutes in med saucepan. The oil should turn a deep amber
Strain and return 2 tbspn oil to pot. Increase heat to med high
Put in half onion 1/4" dice, 2 tbspn minced garlic, and 1/4 cup chopped pickled jalapenos and sweat for 3-5 minutes.
Add in 2 1/4" dice roma tomatoes and cook for 1 minute more.
remove from pan and set aside.
add 1 tbspn oil to pan and heat to med high
add 2 cups long grain rice and toast for about 3 minutes
add onion, garlic, tomato, chile mixture
add 1 tspn cumin, 1 tspn black pepper, 1/2 tspn granulated garlic, 1/2 tspn cayenne
add 4 cups chicken broth
stir and cover
turn heat to med low and leave alone for 11 minutes
after 11 minutes stir, remove from heat, place paper towel over pan and replace cover
let sit for 10 additional minutes
season to taste
Edited by Planethoff - 5/12/16 at 6:17am