Preheat the oven to 350°F (175°C).
In a large oven-safe skillet, melt butter over medium heat. Add chopped bell peppers and diced onion, and sauté for about 5 minutes until slightly softened.
Add ground beef to the skillet. Cook until browned, and vegetables are tender. Drain excess fat if necessary.
Stir in Italian seasoning, Ro*tel tomatoes, cooked rice, tomato paste, Worcestershire sauce, and water. Mix until fully combined and heated through.
Stir in 1 cup of shredded cheddar cheese until melted and incorporated.
If using an oven-safe skillet, sprinkle the remaining cheese on top. Otherwise, transfer mixture to a greased 9x13 baking dish and top with the rest of the cheese.
Bake uncovered for 15 minutes or until the cheese is fully melted and bubbly.
Serve warm and enjoy!