Heat oven to 325F. Grease 9 x 9 oven-safe baking dish and set aside.
Place water and salt into a large saucepan and bring to a rolling boil. Whisk grits into boiling water and continue whisking until grits boil.
Cover pan with lid, reduce heat to low, and cook 5-6 minutes, stirring occasionally until cooked.
In medium bowl, whisk eggs. Slowly whisk one cup of grits into eggs. Whisk egg mixture back into grits, along with shredded cheese, butter and bacon.
Pour into baking dish and bake for 30-35 minutes. Let stand 5 minutes before serving.