Bring water to a boil in a large saucepan. Gradually stir in grits, garlic, salt, and nutmeg; return to a boil. Cover, reduce heat, and cook 10 minutes or until grits are thickened. Stir in cheese and whipping cream. Remove from heat.
Beat egg yolks. Gradually stir about 1 cup of hot grits into yolks; add to remaining hot grits, stirring constantly. Let cool 5 minutes.
Beat 4 egg whites at high speed of an electric mixer until stiff peaks form. Fold beaten egg whites into grits. Pour mixture into an ungreased 2 1/2-quart souffle dish. Bake at 400° for 30 to 40 minutes or until puffed and golden. Serve immediately.