Combine the chicken broth, milk, and garlic powder in a medium sauce pot. Place a lid on top and bring it up to a boil over medium-high heat, stirring occasionally to prevent the milk from scorching.
Once boiling, stir in the quick cooking grits and salt. Turn the heat down to medium-low and let the grits simmer for about 5 minutes or until thickened, stirring occasionally.
Remove the grits from the heat and stir in the butter and pepper.
Finally, stir in the shredded cheddar, one handful at a time, until fully melted into the grits. Serve warm.