Melt butter in heavy large saucepan over medium heat. Add onion and saute until tender, about 10 minutes. Add garlic, bay leaf. Stir 1 minute.
Add quinoa and stir just until coated. Add stock and water. Bring to boil. Reduce heat and simmer until quinoa is tender, about 10 minutes. Drain. Discard bay leaf.
Stir lime juice and cilantro into cooked quinoa.