Steps:
- 1. Preheat oven to 350 degrees. Lightly grease a medium baking dish. 2. Bring the milk to a boil in a pot over medium heat. Melt 1/2 cup butter in the boiling milk. Gradually mix in the grits, and cook 5 minutes, stirring constantly. 3. Remove from heat, and season with salt and pepper. Beat with a whisk or electric mixer until smooth. Mix in the Cheddar cheese and 1/3 cup butter. Transfer to the prepared baking dish, and sprinkle with Parmesan cheese. 4. Bake 1 hour in the preheated oven, until firm.
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