In a large saucepan set over medium-high heat, combine the milk, water, and salt. Heat until the mixture begins to simmer.

Reduce the heat to medium-low and gradually stir in the instant grits. Cover the saucepan and cook for approximately 5 minutes, stirring occasionally, until the grits have thickened.

Remove the saucepan from heat. Stir in the shredded cheddar cheese and ground black pepper until fully incorporated and smooth.

Evenly spread the prepared grits mixture into a lightly greased baking dish. Refrigerate for 3 hours, or until the mixture is fully set and firm.

When ready to cook, heat the oil in a large skillet over medium heat until shimmering.

In a shallow dish, whisk together the eggs and 2 tablespoons of milk. In a separate shallow dish, combine the panko breadcrumbs and Creole seasoning.

Using a round cutter, cut the chilled grits into evenly sized cakes.

Dip each grit cake into the egg mixture, then coat thoroughly with the breadcrumb mixture. Repeat the process by dipping again into the egg mixture and breadcrumbs to create a double coating.

Carefully place the coated grit cakes into the heated oil. Cook for 2–3 minutes per side, turning gently, until each side is golden brown and crisp.

Transfer the cooked grit cakes to a paper towel–lined plate to drain briefly before serving.