In 3-quart casserole, place water, grits and salt.
Micro wave at high (10) 8 to 12 minutes; stir after 5 minutes.
Add butter and 1 1/2 cups cheese to grits.
Stir well until melted.
In 1-cup glass measure, beat eggs; add enough milk to total 3/4 cup.
Add garlic powder and hot sauce.
Quickly stir into grits.
Pour into well-greased 8-inch square glass baking dish.
Sprinkle remaining cheese over top.
Sprinkle with paprika.
Microwave at medium high (7) 15 to 20 minutes.
Let stand 5 minutes before serving.