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In a heavy pot, cook the bacon over medium heat to render the fat, about 2 minutes. Add the onions and cook with the bacon until the onions are golden brown and the bacon is chewy, about 5 minutes. Carefully add the chicken broth and 2 cups water. Whisk in the grits. Bring to a boil, lower to a simmer and cook until thickened, about 25 minutes. Stir in the cream and cheese until thoroughly combined. Season with salt and pepper.
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