Preheat the oven to 350 degrees F and prepare a 9x13 inch baking dish with nonstick cooking spray.

Place the water and ½ teaspoon salt in a saucepan and bring to a boil over high heat. Slowly whisk in the grits. Reduce the heat to low; cover and simmer for 5 minutes, stirring occasionally.

Beat the eggs and milk together; set aside.

In a large mixing bowl, combine the grits, sausage, and 1 ½ cups cheese. Combine the eggs and grits mixture. Add the butter, black pepper, and remaining salt. Pour into the prepared baking dish. Sprinkle with remaining cheese.

Bake uncovered for about 1 hour or until a knife inserted in the center comes out clean. Let stand for 5 minutes before cutting.