In a large skillet, brown sausage, break into small pieces and drain. Set aside.
Bring water to a rolling bowl in a large saucepan with a lid; stir in grits. Return to a boil, then cover, reduce heat and simmer 5 minutes. Remove from heat. Add cheese and next 3 ingredients, stirring until cheese melts. Stir in sausage and eggs.
Spoon mixture into a lightly greased 13x9x2 inch baking dish. Sprinkle with paprika if desired. Bake 350 for 1 hour or until golden brown. Let stand 5 minutes before serving. Garnish if desired.
NOTE: Casserole may be prepared ahead. Prepare grits mixture as directed above; do not bake. Cover and refrigerate overnight. Remove from refrigerator; let stand, covered, 30. Uncover and bake as directed.
Notes
Recipe adapted from Southern Living's Our Best Christmas Recipes, 1995, page 80.