Step 1

Preheat the oven to 350 degrees F.

Step 2

Lightly grease a 7x11-inch baking dish.

Step 3

In a large saucepan, heat the milk over medium-high heat just until boiling.

Step 4

Gradually whisk in the butter and the grits.

Step 5

Reduce the heat to low and simmer, whisking constantly, until the grits are cooked, about 5-7 minutes.

Step 6

Transfer the saucepan from the heat.

Step 7

Stir in the egg, the cheddar cheese, the salt, and the pepper.

Step 8

Pour the mixture into the prepared baking dish.

Step 9

Sprinkle the parmesan cheese on top of the casserole.

Step 10

Bake until the mixture is set, about 35-40 minutes.

Step 11

Serve.