Step 1: Preheat oven to 350 degrees.
Step 2: Lightly grease a 1-quart baking dish.
Step 3: Put the milk, water ,pepper and onion salt in a large heavy-bottomed saucepan. Bring to a boil over medium-high heat. Gradually whisk in the grits and bring back to a boil.
Step 4: Reduce the heat to low and cover, simmer for 15 minutes, until the grits are thickened, stirring frequently to prevent scorching.
Step 5: Remove from the heat and stir in the butter and 1 cup of the cheese, stirring until melted.
Step 6: Temper a large spoonful of grits into the beaten eggs and return the egg mixture to the green onions and thickened grits, stirring vigorously.
Step 7: Season with Tabasco pepper sauce.
Step 8: Pour the mixture into pam sprayed buttered baking dish and bake for 25-30 minutes, until just set and golden.
Step 9: Sprinkle with the remaining cheese and bake for 5 minutes longer, until the cheese has just melted.
Step 10: Sprinkle with paprika and serve.
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