Bring water to a boil. Stir in grits and salt. Return to a boil, cover, reduce heat and simmer 10 minutes or until thickened, stirring often. Stir in paprika and pepper. Beat eggs in a large bowl. Gradually add about 1/4 of hot grits into eggs; add to remaining hot grits, stirring well. Stir in cheese and chiles. Pour into greased 11x7 inch baking dish. Bake at 325 degrees for 45 minutes or until set. Yield: 8 servings.