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Cuban Red Beans and Rice (Oriente)

• 1 lb dried red Spanish style beans
• 1 ham bone with plenty of meat on it or 2 cups ham in bite sized chunks
• 4 cups water
• 1 cup red wine
• 6 strips bacon, chopped
• olive oil for frying
• 1 large onion, diced
• 2 green peppers, diced
• 5 cloves garlic, minced
• 1 teaspoon oregano
• 1 tablespoon cumin
• 1 bay leaf
• 3 tablespoons vinegar
• 1 habanero pepper, whole
• 2 1/2 cups long-grain white rice
• 2 teaspoons salt
• 1/4 teaspoon black pepper

ps: Thanks Lillian