Preheat your oven to 350ºF. Grease a 2 quart baking dish. Bring water and salt to a boil in large saucepan. Slowly stir in the grits. Cover, reduce the heat and cook for 5 minutes, stirring occasionally. Remove the pan from the heat. Stir in one cup of cheese and butter until melted. Add the eggs, milk and pepper, blend well. Pour the mixture into a prepared dish. Sprinkle with the remaining cheese. Bake for 1 hour or until the cheese is golden brown. Cool for 10 minutes before serving. Makes 6 to 8 servings.