Step 1

Preheat oven to 350°. In a large skillet, cook bacon over medium heat until crisp, stirring occasionally. Remove with a slotted spoon; drain on paper towels.

Step 2

Meanwhile, in a Dutch oven, bring water, milk and salt to a boil. Slowly stir in grits. Reduce heat to low; cook, covered, until thickened, 15-20 minutes, stirring occasionally. Remove from heat. Stir in 1-1/2 cups cheese until melted. Slowly stir in eggs until blended. Stir in bacon, corn and pepper. Transfer to a greased 2-qt. baking dish. Sprinkle with remaining 1/2 cup cheese.

Step 3

Bake, uncovered, until edges are golden brown and cheese is melted, 35-40 minutes. Let casserole stand for 10 minutes before serving. If desired, serve with avocado.