Preheat your oven to 180°C (350°F). This step is very important. A properly heated oven helps cook the risotto evenly. It also gives the rice the perfect texture without drying it out.

Heat olive oil in a pan over medium heat. Add chopped onion. Cook until soft and light golden. This takes about 5 minutes. Stir gently so the onion does not burn.

Add Arborio rice to the pan. Stir well for 2 minutes. The rice should look slightly shiny. This step helps the grains absorb flavor better during baking.

If using wine, pour it now. Let it cook for 2 minutes. The alcohol will cook off. It adds a rich flavor to the risotto. If skipping wine, move to the next step.

Pour in warm broth slowly. Stir gently. Make sure the rice is fully covered. This liquid will cook the rice in the oven and create a creamy texture.

Move everything into an oven-safe dish. Spread evenly. Cover tightly with foil. This keeps moisture inside and helps cook the rice perfectly.

Place the dish in the oven. Bake for 30 minutes. Do not open too often. Let the heat do its job. The rice will slowly absorb all the broth.

After 30 minutes, remove from oven. Stir gently. Add mushrooms or peas if using. Cover again and bake for 10–15 more minutes.

Remove from oven. Add butter and Parmesan cheese. Stir well. This makes the risotto creamy and rich. Taste and adjust salt and pepper.

Serve immediately while hot. The texture should be soft and creamy. You can add extra cheese on top if you like.