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1. In a small skillet, melt 2 tablespoons of butter over moderate heat. When the foam subsides add the ¼ cup of onion and cook for 4 or 5 minutes until translucent but not brown. Meanwhile, bring the 2 cups of water to a bubbling boil in a 1-quart saucepan. Add the salt and pour in the grits slowly without allowing the water to stop boiling.
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2. Boil for about a minute, stirring constantly, then reduce the heat to medium and cook for another 2 minutes. With a rubber spatula, scrape into the saucepan the onions and add the Tabasco, a few grindings of black pepper and 1112 cups of the grated Cheddar cheese combined with the 3 tablespoons of soft butter.
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3. Preheat the oven to 400°. Lightly butter a 1-quart casserole or souffle dish. With a wire whisk or rotary beater, beat the egg whites until they form stiff peaks on the beater when it is lifted from the bowl. With a rubber spatula, thoroughly fold the egg whites into the grits mixture.
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4. Pour into the casserole and sprinkle the top with the remaining grated Cheddar cheese. Bake in the middle of the oven for about 30 minutes, or until the mixture has puffed and browned. Serve at once as an accompaniment for any meat or poultry dish.
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