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Two-Alarm Grits

8 cups water
2 cups grits
1 teaspoon salt
1 1/2 cups butter
2 cups (8-ounces) cheddar cheese
2 tablespoons sherry
1 teaspoon Worcestershire sauce
1 teaspoon liquid hot pepper sauce
2 large eggs
1/2 cup chopped green chili peppers

1. Bring water to a boil in a saucepan. Add grits and 1 teaspoon salt. Cover and cook, stirring occasionally, over low heat until thickened, about 20 minutes.
2. Remove from the heat. Add butter and grated cheddar cheese; stir until the cheese is melted. Add sherry, Worcestershire sauce, liquid hot pepper sauce, eggs, and chopped green chili peppers.
3. Spoon into a greased 3-quart baking dish and bake at 350°F (175°C) for 1 hour.

Makes 8 servings.