Set oven to 300°. In a rondeau over medium heat add milk and water and bring to a boil.
Once boiling, slowly whisk in grits. Cook, stirring until mixture begins to thicken. Remove from heat, cover, and bake until creamy, roughly 30 minutes.
Remove from oven and fold in cheddar cheese, scallions, salt, and black pepper. Hold hot for service.
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