Serrano Grits With Cheese

1/2 c Red Bell Pepper; Chopped
1/2 c Green Onions/Tops; Sliced
2 ea Serrano Chiles; *
2 tb Margarine Or Butter
1 1/2 c Milk
1 1/2 c Water
1/2 ts Salt
1/4 ts Pepper
3/4 c White Hominy Quick Grits
1 1/2 c Cheese; 6 oz, **

* Serrano Chiles should be seeded and chopped. ** Use Shredded Monterey Jack Cheese in this recipe.

Cook and stir the bell pepper, onions, and chiles in the margarine in a 10 inch skillet until the pepper is tender. Heat the milk, water, salt and pepper to boiling in a 2-quart saucepan. Gradually add the grits, stirring constantly, and reduce the heat when they have all been added. Simmer uncovered, stirring frequently, until thick, about 5 minutes. Stir in the bell pepper mixture and cheese.

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