Fresco Tomato and Basil Bisque

I got this recipe from a coworker and it's delicious! I love creamy tomato soups but have never made one fresh before. I highly recommend this recipe, obviously.

1/4 c butter
1 T salt
1/2 t black pepper
1 1/2 c chopped onions
2 c milk or cream (I used fat free half-and-half)
2-3 cloves of garlic minced/pressed
1 pinch red pepper flakes
4 c trimmed and cut tomatoes (or 2 cans of diced tomatoes)
1 1/2 T sugar
3 T uncooked rice
2 c water or chicken broth (I used broth)
1/4-1/2 c fresh chopped basil

In a large saucepan, melt butter and saute the onions. Add the garlic and the red pepper, saute for one minute. Add tomatoes, sugar, rice, and water/broth. Bring to a boil, then lower the temperature. Cover and simmer for 20-25 minutes. Add basil and simmer for 2-3 minutes. Puree this whole mixture in a blender or food processor (unless your machines are huge, I suggest doing this half at a time to save yourself the explosion and kitchen cleaning I may have gone through). Return blended soup to the saucepan. Add warm milk, salt, and pepper. Simmer 2-3 minutes and serve with toasted bread and parmesan cheese, veggie sandwiches, or eat it by itself! It serves probably 6-8, we had a lot left over.