Turn oven on to preheat to 350 degrees.
Put water on stove and bring to a boil
Add grits slowly to boiling water, and cook, stirring frequently, until done (according to package directions as different brands have different cooking times.)
While the water is coming to a boil, cook sausage over medium heat. Drain excess grease and set aside.
When the grits are cooked, add evaporated milk, garlic powder, 1 ½ cups of the shredded cheddar cheese, black pepper, and hot sauce. Mix well until cheese is melted and all ingredients are completely incorporated.
Lightly beat the eggs in a small bowl. Add 1 -2 tablespoons of the hot grits mixture to the eggs and mix quickly to incorporate the eggs into the hot mixture and increase the temperature of the eggs. (This is called "tempering," and helps to prevent the eggs from cooking into scrambled eggs instead of being incorporated into the casserole.)
Stir cooked sausage into the grits mixture.
Pour all of the grits mixture into a well greased 8 or 9 inch baking pan.
Place in oven and bake for 1 hour.
Remove from oven and sprinkle the top with the remaining ½ cup of shredded cheddar cheese.
Return casserole to oven and allow it to bake for 10 more minutes or until cheese is melted and beginning to brown.
Remove casserole from oven and allow it to sit for 10 minutes before serving.