Bring water and salt to a rolling boil in large pan. Whisk in grits, stirring constantly to avoid any lumps. Cook according to grits package directions and desired thickness is reached. Reduce heat to low. Stir in butter and cream cheese until melted.
Turn off heat and add shredded cheddar cheese and tabasco sauce. Stir with large spoon until cheese is melted.
Carefully fold in eggs to grits mixture. Add eggs slowly and stir quickly to avoid “scrambling” the eggs. Fold in diced jalapeno peppers.
Transfer grits mixture to lightly greased 2 qt. or 9x13 casserole dish. Sprinkle top of casserole with smoked paprika.
Bake at 350°F for 40-45 minutes or until top is set.
Notes
Let casserole sit for 10-15 minutes before cutting into it to allow grits to absorb liquid. Otherwise the casserole will be “soupy”.Cooking Time: Will vary based on size of casserole dish used with deeper dish taking longer to bake.