Preheat oven to 325 degrees F. Bring water to a boil in a 4-quart saucepan. Add grits, stirring with a wire whisk. Cook 2-3 minutes or until grits start to thicken. Blend in remaining ingredients except eggs.
Add 1-2 spoonfuls of hot grits to eggs; stir well. Repeat several times until eggs are warm. Stir eggs into saucepan. Pour mixture into a 2-quart baking dish. Bake 45 to 50 minutes or until top is golden.