Heat oven to 350 degrees. Grease 1-1/2 quart casseroleor baking dish. Prepare grits according to package directions.

Add small amount of grits to beaten egg. Return grits mixture to pan. Add remaining ingredients. Cook over low heat an additional minute or until cheese is melted.

Pour into prepared casserole. Bake 30 to 40 minutes, or until top is set and lightly puffed. Let stand 5 minutes before serving.