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Heat and soak the grits. Place 4 cups water, 1 ½ cups grits, 2 dried bay leaves, and ½ teaspoon kosher salt in a large pot or Dutch oven and bring to a boil over high heat. Immediately remove from the heat, cover, and set aside for 15 minutes. Meanwhile, prepare the butter and cheese.
Prepare the butter and cheese. Cut 8 tablespoons unsalted butter into 8 pieces and grate until you have ½ cup Parmesan cheese.
Boil the grits. Uncover and return the grits to a boil over medium-high heat. Cook, stirring regularly with a whisk and scraping the bottom to prevent clumping or burning, for 20 to 25 minutes.
Finish the grits. The grits are ready when most of the water is absorbed and the grits are al dente (tender with a toothsome bite). Remove from the heat. Remove and discard the bay leaves. Stir in the butter, cheese, and 1 cup heavy cream just before serving.