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Bring milk, 2 cups water, and a very large pinch sea salt to boil in medium saucepan. Reduce heat to low simmer and add cornmeal in slow, steady stream, constantly whisking to prevent lumps. Stirring occasionally, keep polenta at bare simmer, and cook 15 minutes. If mixture gets too thick (mine did), add water, 1/2 cup at a time. (I ended up doing this twice.)
Remove from heat, stir in butter and olive oil, and then stir in cheddar cheese. Season with sea salt and freshly ground black pepper.