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Bring water, milk, garlic powder and salt to a boil.
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Stir in grits, and wait for reboil.
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Set a timer for 20 minutes, and press start.
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Reduce heat, and simmer on low for the first 8 to 10 minutes, stirring often to avoid bottom burn.
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At this point, the grits will be pretty thick. As they simmer they will start spitting at you (i.e., splattering a bit). Turn off the heat, give the grits a good stir, and place a lid on the pot.
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Let sit for the remainder of the time left on the timer.
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When the time is up, stir in the pepper, parmesan cheese and butter.
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Serve and garnish with a light dusting of paprika, if desired.