Lombok Requires Annotation Processing

I'm using Android Studio 2.2 Preview 7, and the Lombok plugin suddenly started saying: Annotation processing seems to be disabled for the project X, and providing a link to settings.

Clicking on the notification does not take me to the right place.

What is the fix for this?

The Settings opened by clicking the notification are the Per Project settings, and those are not what you need in this case.

To fix this, go to

• File->Other Settings->Default Settings
• Expand Build, Execution, Deployment
• Expand Compiler
• In Annotation Processors check Enable annotation processing
• You may need to re-open the project to get the settings to take effect.
• Enjoy

For complete reference - screenshot with appropriate settings screen: