In a medium saucepan bring water and chicken granules to boiling. Gradually stir in grits. Remove from heat. Cover and let stand 5 minutes. Stir in onion and the 1/2 cup cheese. Stir in eggs, milk, and corn. Transfer to a lightly greased 1-quart casserole.
Bake, uncovered, in a 350 degree F oven for 45 to 50 minutes or until set in center. Sprinkle with the remaining cheese. Let stand 1 to 2 minutes before serving to melt cheese. Makes 4 servings.