In a saucepan, heat butter over medium heat. Add onions and cook until wilted. Add rice and stir. Add water, bay leaf, salt, pepper, and hot sauce. Bring to a boil, cover and reduce heat to simmer. Cook 20 minutes.
Meanwhile, combine peas with the remaining tablespoon of butter, salt and pepper to taste. Heat while shaking and stirring the pan so the peas cook evenly for about 1 minute.