I think the secret to flavorful creamy grits is to use a combination of chicken stock and milk and cook VERY slowly over low heat for an extended period of time. The flavorful liquids are much better than water alone. Most directions for grits will instruct you to first bring the liquid to a simmer. When the grits are added to the cold liquid and heated together, they are much less likely to form solid clumps. A little whisking is necessary as they start to soak up the liquid but after that there shouldn't be any significant clumps. Cooking at a very low temperature for a longer period of time will allow the grits to "bloom" or absorb the liquid and swell up instead of the liquid just simply evaporating from the pot.
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Stir in the butter, cheese and cream. Adjust the seasonings to taste. Serve warm.
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Bread and Milk
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