Bring a pot of water with 7-8 cups of water to a boil
While the water heats, cut your huitlacoche into bit sized pieces and remove any black mushy spots. These are edible, but they will take away from the texture.
When the water begins to boil, slowly pour in your grits while stirring and then lower the heat to a simmer. Simmer these for about 30 minutes or until the texture is to your liking (stir occasionally to prevent sticking).
Cut your chili pepper finely and set aside.
Heat a skillet to medium high with a small amount of oil or butter and sear the huitlacoche on each side until they are nicely browned.
After removing your huitlacoche from the skillet, fry the two eggs in the pan to your preferred doneness.
When your grits are finished cooking, stir in the shredded cheese and finely chopped pepper and salt to taste.
Finally, scoop some of the grits onto a plate or bowl and top with the huitlacoche, fried egg and finely chopped chives.