* Bring 2 cups fat-free milk and 1 1/4 cups water to a boil in a medium saucepan over medium-high heat. Slowly add 3/4 cup quick-cooking grits, stirring well with a whisk. Cover, reduce heat, and simmer 5 minutes or until thick, stirring occasionally. Remove from heat. Add 1 cup reduced-fat shredded sharp cheddar cheese, 1 tablespoon butter, 1/2 teaspoon salt, and 1/8 teaspoon freshly ground black pepper, stirring until the cheese melts.