01 - In a medium saucepan, combine whole milk, water, and kosher salt and bring to a gentle simmer over medium heat.
02 - Slowly whisk in the stone-ground grits, stirring constantly to prevent lumps.
03 - Reduce heat to low and cook, stirring frequently, until grits thicken and become tender, approximately 20 to 25 minutes. Add additional water if necessary to maintain a creamy texture.
04 - Stir in heavy cream and unsalted butter until fully incorporated and smooth.
05 - Remove from heat and fold in shredded sharp cheddar cheese until melted and evenly distributed.
06 - Taste and adjust seasoning as needed with additional salt or pepper.
07 - Serve hot with chopped fresh chives and a sprinkle of freshly ground black pepper.