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Step 1
In a large saucepan add water, milk, salt, cayenne pepper and butter. For creamier grits. Bring contents to a boil over high heat.
Step 2
Add grits to the boiling water 1/4 cup at a time, whisking constantly to prevent any lumps from forming.
Step 3
Reduce heat to low and cook grits for 25 minutes, stirring occasionally.
Step 4
Whisk in shredded cheese a little at a time until completely incorporated (See Note 2). Cook on low heat for another 5 minutes.
Step 5
Serve with a sprinkle of shredded cheese and black pepper on top.