In a medium-size heavy saucepan over high heat, bring milk and water to a boil. Slowly add cornmeal, stirring constantly. Reduce heat to low and cook 30 to 35 minutes, stirring constantly. Add basil, cheese, TABASCO® Sauce, and salt and mix well.
Pour mixture into a lightly greased 10-inch round cake pan and allow to cool. To serve, slice polenta into wedges, brush with olive oil and grill on both sides until golden brown.
Makes 6 to 8 servings.