Preheat oven to 350 degrees F.
Cook the grits according to the directions on the back of the package. Remove from the heat and add next 6 ingredients (Cheddar through chilies). Stir well and season with garlic salt, to taste. Pour into a buttered 9-inch baking dish and bake for 1 hour. Let cool slightly before slicing and serving.
Recipe courtesy of Stephanie March