1. Bring chicken broth, milk, salt, and pepper to a boil in a medium saucepan over medium-high heat; gradually whisk in grits. Cover, reduce heat to medium-low, and simmer, whisking occasionally, 5 minutes or until thickened. Stir in cheese and butter until melted.
*Water may be substituted.
Note: We tested with Frico Smoked Gouda.