Combine milk, water, and butter in a saucepan, and bring to a boil on your stove.
Slowly add grits while stirring with a whisk or fork to keep lumps from forming.
Continue to cook over low heat for 5-6 minutes, stirring continuously.
Remove from heat, and stir in cheese, butter, spices (if using), and salt and pepper to taste.
Optionally top with additional shredded cheese before serving.
Notes
This goes well as a side dish for meat and fish, especially when using the onion and garlic. If you make this for breakfast, you probably want to leave out the extra spices. To compensate, you may need extra salt, but taste first to make sure!