Serves: 4 to 6 serving
1) In a medium saucepan, combine the water or broth, milk, salt, and cayenne and bring to a boil. Slowly whisk in the grits and lower the heat to a simmer. Cover and cook, stirring occasionally, until thickened, about 30 minutes.
2) Stir in the cheese and butter until evenly incorporated. Season with pepper to taste. Serve immediately.
3) Cook's Note: For baked grits: Preheat the oven to 180C/Gas 4. Cool the grits slightly, stir in the 3 beaten eggs. Transfer grits to a buttered deep casserole dish, smooth the top with a rubber spatula, and bake until just set and lightly browned, about 1 hour. Remove from the oven and let cool for 5 minutes before serving.