1Preheat oven to 350 degrees F (175 degrees C). Grease a 9x12-inch casserole.
2In a saucepan, bring water to boil. Stir in grits, reduce the heat to low, and simmer until thick, about 10 minutes. Stir in processed cheese, Cheddar cheese, and margarine. Season with salt, seasoned salt, hot pepper sauce, and white pepper. Stir in eggs; cook, stirring, until well blended. Stir in parsley flakes, chives, and green chiles. Pour into casserole.