Line one large or two small baking sheets with parchment paper or silpat
In a medium sauce pan combine the water, milk, butter and salt and bring to a boil. Once fully melted dump in all the flour at once and stir it with a wooden spoon until you have a smooth dough. Continue to stir over low heat until it dries out and pulls away from the pan in one mass - about 2-3 minutes. Scrape the dough into a bowl, allow to cool slightly before beating the eggs into the dough, one at a time. Add the cheese, chives, salt & pepper.
Using two tablespoons (dipping in warm water as you go), place tablespoon size mounds onto the baking sheets, two inches apart. Sprinkle with cheese and bake for 20-25 minutes, or until puffed and golden brown. Serve warm!