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Sausage Grits Texas Style

1 lb bulk pork sausage
3 cups hot cooked grits
2 1/2 cups (10 oz.) shredded cheddar cheese
1 Tbsp butter
3 eggs, beaten
1 1/2 cups milk
1 small can chopped green chilies

Cook sausage till brown, drain well. Spoon sausage into a lightly greased 13"x9" inch baking dish. Combine grits, cheese and butter. Stir till cheese and butter melt. Combine eggs and milk; stir into grits; pour over sausage. Bake 1 hour at 350 degrees. Garnish as desired. Can be made and refrigerated overnight and baked the next morning.