1. Heat oven to 350. Grease a 2 quart glass baking dish. In large saucepan, combine water and salt. Bring to a boil. Gradually stir in grits. Reduce heat to low; cover and cook 5 minutes, stirring occasionally.
3. Remove grits from heat. Add butter and 1 cup of cheese, stir until melted. Add sausage, eggs, and pepper; mix well. Pour mixture into greased baking dish. Sprinkle remainder of cheese on top.
4. Bake at 350 for 1 hour or until golden brown. Let stand 10 minutes before serving.