Add water, chicken broth and cream to a pot and bring to a boil.
Slowly whisk in grits and continue stirring for 1-2 minutes. Lower heat to a simmer, add salt, and cover. Simmer until the grits are no longer grainy, about 10 minutes, stirring occasionally to avoid lumps forming.
Add cream cheese, shredded cheese, and salt and pepper to taste. Continue simmering for 5 more minutes, stirring occasionally.
Notes
Make sure to keep an eye on the boiling liquid and remove it from the heat if it starts to bubble over. Scorched cream is a pain to clean up.
If you want to use “real” (non-instant) grits, it will require about 2 more cups of liquid (you choose! Adding more broth = for flavor - more cream = well, more cream) and at least 45 minutes to simmer to a creamy consistency. Instant grits are processed further and cut the cooking time in half.
Any of these cheese work well in grits: mild or sharp cheddar, pepper jack cheese, Colby jack, Monterey jack, gouda, muenster