1. Heat water and cream over medium heat until the mixture begins to boil. While whisking continuously, pour grits into water and cream mixture in a slow, steady stream. 

2. Reduce heat and simmer. Season with salt and white pepper, and stir ofter for approximately 30 minutes or until grits are tender. 

3. In a small skillet, melt 2 tablespoons butter over medium heat. Sautée diced jalapenos until they begin to soften. Stir into grits. Remove from heat and add the remaining butter and cheese. Adjust seasoning to taste.