1/2 c Red Bell Pepper; Chopped 1/2 c Green Onions/Tops; Sliced 2 ea Serrano Chiles; * 2 tb Margarine Or Butter 1 1/2 c Milk 1 1/2 c Water 1/2 ts Salt 1/4 ts Pepper 3/4 c White Hominy Quick Grits 1 1/2 c Cheese; 6 oz, ** * Serrano Chiles should be seeded and chopped. ** Use Shredded Monterey Jack Cheese in this recipe. Cook and stir the bell pepper, onions, and chiles in the margarine in a 10 inch skillet until the pepper is tender. Heat the milk, water, salt and pepper to boiling in a 2-quart saucepan. Gradually add the grits, stirring constantly, and reduce the heat when they have all been added. Simmer uncovered, stirring frequently, until thick, about 5 minutes. Stir in the bell pepper mixture and cheese.