Place the milk, water and salt into a large, heavy bottomed pot over medium high heat and bring to a boil.  Gradually add in cornmeal, whisking constantly.   Decrease heat to low.  Cover and whisk every 3 minutes or so to prevent burning.  Cook 15-20 minutes.

Remove from heat, add pepper, butter cheese, stir until melted.  Enjoy as is or place in an oven safe dish and bake for 20-30 minutes at 350 until ready to eat.