Preheat oven to 350 degrees F. Prepare grits according to package directions. Add 1 cup of the cheese, the butter, salt, garlic powder or garlic, and ground red pepper; stir until cheese and butter are melted. Gradually stir 1/2 cup of hot mixture into beaten eggs. Stir egg mixture into remaining grits. Pour into a greased 2-quart casserole. Top with remaining cheese.
Bake for 50 to 60 minutes or until set. Let stand 10 minutes before serving. Sprinkle with parsley. Makes 6 to 8 servings.