2 cups whole milk
2 cups seafood stock
1 cup stone-ground grits
1 teaspoon kosher salt
1/2 teaspoon ground black pepper
1/2 cup finely chopped Hatch green chiles
2 tablespoons cream cheese, softened
1 tablespoon unsalted butter
In a 2-quart saucepan, heat milk and stock over medium-high heat. Cover and bring to a boil. Uncover and add grits, salt, and pepper; reduce heat to medium. Cook, stirring constantly, until grits have thickened slightly, about 8 minutes. Reduce heat to low; simmer for 20 minutes, stirring every 2 to 3 minutes. Cook 15 minutes more, stirring constantly to prevent grits from sticking to bottom of the pan. Add up to ½ cup hot water, if necessary, if mixture becomes too thick.
When grits are soft and creamy, remove from heat, and add chiles, cream cheese, and butter, stirring to combine. Season to taste with salt and pepper. Serve immediately.