1Place water and milk in a small microwaveable mixing bowl, add the grits and stir well. Place in microwave and cook on high power for 2 1/2 minutes. Check to make sure they are not boiling over. Stir once.
2Fold ham slices to form several layers and cut into small squares. Cut American cheese also. Stir in meat and cheese and return to microwave for another 30-40 seconds to heat, melt, and finish cooking.
3Remove grits from microwave, add butter and all seasonings and stir well. They should be quite thick.
4For serving, you can just pile them into a bowl and eat, or one of my favorites is to press the grits into a small bread pan that has been sprayed with cooking spray and refrigerate til set. Cut off slices of the solid grits, dust with flour and fry until brown on both sides and eat with fried eggs and toast. YUM for breakfast.