In a saucepan over medium to high heat, add grits, milk, cream, salt and 1 cup of the water. When it comes to a boil, reduce to low heat. Stir frequently. As the liquid cooks down, add the remaining water 1/4 cup at a time until it’s at a good consistency. For thicker grits add only 1/2 of the water. For regular consistency add the full cup. Simmer for 20-30 minutes, then add the butter and cheese. Remove from heat.