Jalapeno Cheese Grits

0 Melt 1 tablespoon of the butter in a heavy saucepan.
1 Saute the jalapenos until soft then remove to a plate.
2 Add the water, the cream, the salt, and the rest of the butter.
3 Bring to a boil and slowly whisk in the grits.
4 Cook according to instructions on the package whisking to keep out lumps. Usually about 15- 20 minutes.
5 When grits are thick and tender add the sauteed jalapenos, cream cheese and smoked cheddar.
8 Stir until smooth and blended.
6 Taste, add the liquid smoke if desired, and adjust seasoning.
7 Sprinkle on a little smoked paprika and some chopped jalapenos as garnish.