Cook the Grits: In a large saucepan, bring the whole milk, water, and salt to a boil. Slowly whisk in the stone-ground grits. Reduce the heat to low and simmer for 25-30 minutes, stirring occasionally, until the grits are tender and have absorbed most of the liquid. Stir in pepper and 2 tablespoons of butter, melting it until smooth.

Cook the Sausage: In a skillet, cook the breakfast sausage over medium heat until browned and crispy, about 5-7 minutes. Drain excess fat and set aside.

Scramble the Eggs: In another pan, melt the remaining 2 tablespoons of butter over medium heat. Whisk the eggs, pour into the skillet, and scramble until fully cooked.

Assemble the Bowls: Divide the cooked grits between four bowls. Top with scrambled eggs and cooked sausage. Sprinkle shredded cheddar cheese on top to melt.

Finish the Bowls: Garnish with freshly chopped chives and serve immediately.