Bring chicken broth and 1 1/2 cups milk just to a boil in a large saucepan. Slowly stir in grits and 1/2 tsp. salt. Cover, reduce heat to medium-low, and cook, stirring occasionally, 6 to 7 minutes or until mixture is thickened. Add Parmesan cheese and pepper, stirring until cheese is melted.
Cheddar Cheese Grits: Cook grits as directed, reducing salt to 1/4 tsp. and substituting 2 cups (8 oz.) shredded extra-sharp Cheddar cheese for Parmesan cheese.