Bring water and chicken broth to boil in a medium pot and season with salt.
Stir in grits and lower heat to low heat.
Cover and cook for about 20-25 minutes. Stir every 5 minutes or so to prevent lumps from forming and make sure to get the bottom and edges of the pot.
Once cooked, take off heat and stir in butter and grated cheddar cheese until melted and smooth.
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Notes
Grits - this recipe is made for using stone-ground grits, not any other time since it would requite different ingredient ratios and cooking method. Stone-ground grits will also give you the best flavor and is least processed. (Note: “Stone-ground” and “old-fashioned” grits are the same thing.)
Storing - store leftover grits in an airtight food storage container, in the refrigerator. It should last 3-4 days.
Reheating - you can simply reheat individual portions in the microwave. Add a tablespoon or two of broth or milk to the grits and reheat in 30-45 second increments, stirring in between.