Preheat oven to 350. Grease 13 x 9 casserole. In a large saucepan, bring milk to a buble over medium heat. Add 1 stick of butter and stir while melting. Add grits. Cook for 5 minutes stirring constantly.
Remove from heat. Add salt and beat with a whisk until smooth. Add cheese and 1/3 cup butter and mix. Transfer to the prepared casserole dish. Sprinkle with parmesan cheese.