Heat a nonstick pan over medium heat. Add 1/2 of the orzo and toast until golden brown.

Combine broth and water in a medium saucepan; simmer on low.

In another saucepan, heat butter and oil over medium, add onion, and cook until soft. Add toasted orzo and uncooked orzo; saute for 1 minute to coat.

Add 2 cups of the hot liquid to the orzo, cook until almost absorbed. Repeat one cup at a time, stirring, until liquid is absorbed and pasta is al dente. Add cold butter, 1/4 cup of reserved braising liquid, parsley, salt and pepper to taste, and cook 1 minute longer.