Hominy Grits, Cheese, And Chile Casserole

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3 cups water

2 cups 2% milk

1/2 teaspoon salt

1 cup hominy grits

1/4 cup butter

1 cup shredded sharp cheddar or monterey jack cheese (4 ounces)

2 large eggs, lightly beaten

4 tablespoons canned, roasted, chopped mexican chiles

1/8 teaspoon ground black pepper

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