Buttermilk adds a subtle, creamy tang to the grits.
Bring water, whole milk, and salt to a boil in a medium saucepan over medium-high. Gradually whisk in uncooked grits; return to a boil. Reduce heat to medium-low, and simmer, stirring occasionally, until creamy and thickened, 25 to 30 minutes. Remove from heat, and stir in buttermilk and butter.
Stir green chiles and cheese into warm grits. Top each serving with a fried egg, pico de gallo, and fresh cilantro leaves.