1. Prepare grits according to package directions, using 4 cups milk and 1 tsp. salt. Remove from heat, and let stand 5 minutes. Stir in cheese and next 3 ingredients, stirring until cheese is melted. Spoon mixture into a lightly-greased 8-inch square baking dish or pan, and chill 4 to 24 hours.
2. Roll grits into 1 1/2-inch balls. Whisk together eggs and 1/4 cup water. Dip balls in egg wash, and roll in breadcrumbs.
3. Pour oil to depth of 3 inches in a large, heavy skillet; heat over medium-high heat to 350°. Fry fritters, in batches, 3 to 4 minutes or until golden brown. Drain on paper towels. Keep fritters warm on a wire rack in a pan in a 225° oven up to 30 minutes. Serve warm.
Make ahead: Prepare recipe as directed through Step 2. Cover and chill in a single layer up to 4 hours. Fry as directed. You may also prepare through Step 2 and freeze on a baking sheet for 30 minutes or until firm. Transfer to a zip-top plastic bag, and freeze. Cook frozen fritters as directed in Step 3, increasing cooking time to 5 to 6 minutes or until golden and centers are thoroughly heated.