Bring water, salt and garlic to a boil; slowly stir in grits. Reduce heat; cook and stir for 3-5 minutes or until thickened. Remove from heat. Add butter, 1 cup cheese and chiles; stir until butter melts. Beat eggs and milk; add to the grits and mix well.

Pour into a greased 2 qt. baking dish. Bake, uncovered, at 350 degrees for 45 minutes. Sprinkle with remaining cheese.

Yield: 6 servings