In a small pot, bring water, milk, and salt to a boil. Slowly stir grits into boiling mixture. Stir continuously and thoroughly until grits are well mixed. Let the pot return to a boil, cover pot with a lid, lower the temperature, and cook for approximately 30 minutes, stirring frequently. Add more water if necessary. Grits are done when they have the consistency of stiff cream of wheat. Stir in butter and basil; adjust seasoning as needed. Serve with additional butter on top of each portion. Serve with steak, fish, or poultry. Roasted garlic or truffle oil may also be added.