In a saucepan, melt butter on medium heat; add the jalapenos; stir occasionally and cook until softened, 5 minutes
Add the garlic and cook for 30 seconds more; remove the jalapenos and garlic from the pan
Pour the milk and water into the pan; add the salt; turn the heat to high; when liquid comes to a boil, turn the heat down to low; add the grits; stir until thick and creamy, 5-8 minutes
Once the grits are done, stir in the cheese, jalapenos, and garlic; stir until the cheese has melted; taste and add salt if needed