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In a medium saucepan, bring 4 cups of water (or chicken broth) to a boil. Add a pinch of salt.
Slowly stir in the grits, reducing the heat to low. Simmer, stirring frequently, for about 20 minutes until the grits are thickened and smooth.
Stir in the butter, cheese, and milk (or heavy cream) until the cheese is fully melted and the grits are creamy. Season with salt and pepper to taste.
Serve warm, topped with sour cream or chopped green onions if desired.