Generously butter a 2-quart soufflé dish and place it in the freezer until ready to use.
Cook the grits in the milk and water according to package directions. Add salt to taste.
As the grits cook, preheat the oven to 425 degrees.
When the grits are cooked, scrape them into a mixing bowl. Add pepper, nutmeg, and Tabasco. Stir in all but ½cup grated cheese.
Let cool slightly and add the egg yolks, stirring until well blended. Beat the whites until stiff. Add half the whites to the grits mixture and beat them in. Fold in the remaining whites, using a rubber spatula.
Spoon the mixture into the prepared soufflé dish and smooth over the top. Sprinkle with the remaining ½cup cheese. Place in the oven and bake25 minutes, or to the desired degree of doneness. Serve immediately.