• 2 cups water
• 1½ cups milk
• 1 teaspoon salt
• 1 cup quick-cooking grits
• 9 tablespoons (1 stick plus 1 tablespoon) butter
• 2 scallions (white parts only), thinly sliced
• ¼ teaspoon garlic powder
• 2½ cups shredded sharp cheddar cheese
• One 10-ounce can diced tomatoes and green chiles, drained

Preheat the oven to 350°F.

In a large saucepan, combine the water, milk, and salt and bring to a boil. Gradually add the grits and stir constantly for 1 minute. Reduce the heat to moderately low, cover, and cook 3 minutes. Add 8 tablespoons of the butter, stir till melted, cover, and cook till the grits are thick and creamy, about 4 minutes. Remove the pan from the heat.

In a small skillet, melt the remaining 1 tablespoon of butter over moderate heat, add the scallions, and stir till softened, about 1 minute. Add the scallions to the grits along with the garlic powder and 1½ cups of the cheese and stir till the cheese melts. Add the tomatoes and chiles, stir till well blended, scrape the mixture into a shallow buttered 2-quart baking dish, and bake for 30 minutes. Sprinkle the remaining cheese over the top and continue baking till golden, about 10 minutes. Serve piping hot.