1. To cook grits, combine half-and-half (or another liquid as specified in the recipe), salt, pepper, and other seasonings in a Dutch oven, and stir well. (This recipe for creamy grits calls for half-and-half, but you can also cook grits in either water or broth.)
2. Bring the mixture to a boil, and gradually stir in quick-cooking grits.
3. Return the mixture to a boil; cover, reduce heat, and simmer, stirring occasionally, 5 to 7 minutes or until thickened.
4. Add cream cheese, Cheddar cheese and hot sauce, and stir until the cheeses melt.