In a large pot, bring water to a rolling boil before adding the grits. Reduce the heat to low and stir while they thicken.
When the mixture is thick, stir in the eggs followed by margarine, cheese, seasoning salt and hot sauce. Stir until the cheese has melted. Pour mixture into a 9x13 inch baking dish.
Bake at 350 degrees F (175 degrees C) for 45 minutes. Cut the grits into squares and serve.
