In a large heavy saucepan bring the water to a boil, stir in the grits slowly, and simmer them, covered, stirring occasionally, for 7 minutes. Stir in 1 1/2 cups of the Monterey Jack, the butter, the jalapeno, the scallions, and salt and pepper to taste, stirring until the cheese is melted, and spread the mixture in a buttered 13- by 9-inch baking dish. In a heavy skillet brown the sausage over moderate heat, stirring and breaking up the lumps, transfer it with a slotted spoon to paper towels to drain, and pour off the fat. Add the oil to the skillet and in it cook the onion and the bell pepper over moderately low heat, stirring, until the vegetables are softened. In a bowl whisk together the eggs, the Worcestershire sauce, and salt to taste, stir in the sausage and the vegetables,and spread the mixture over the grits. Sprinkle the sausage mixture with the remaining 1 1/4 cups Monterey Jack and bake the grits in the middle of a preheated 350F. oven for 30 to 35 minutes, or until the eggs are firm. Serves 8 to 10. Gourmet March 1992