Place grits in a bowl with water to cover. Set aside to soak, 8 hours to overnight. Skim any debris that floats to top, rinse well, and drain.
Bring broth to a boil in a saucepan; remove from heat. Add mushrooms and soak until soft, about 30 minutes. Strain mushrooms, reserving broth. Chop mushrooms.
Bring reserved broth and milk to a boil in saucepan over high heat. Stir grits in gradually, add mushrooms, and decrease heat to low. Cover and cook, stirring occasionally, until grits are soft and creamy, 40 to 50 minutes. Stir in Parmesan cheese until melted.
If you do not have morels, you can use 8 ounces of fresh mushrooms - washed, de-stemmed, and sliced. Heat 2 tablespoons butter in a small pan; cook and stir mushrooms until tender. Stir mushrooms into grits when called for in the recipe.
Per Serving: 310 calories;9.3 g fat;
41.9 g carbohydrates;
14.3 g protein;
27 mg cholesterol;
564 mg sodium.