PLACE Catfish in a plastic bag with egg and hot sauce.
SET aside until time to fry.
PREPARE the grits by adding water, whipping cream, butter, salt and chives to a medium size boiler.
BRING to a boil.
ADD in the grits.
LOWER heat and simmer 5 minutes until grits have thickened.
FOLD in the cream cheese.
COOK bacon in skillet until fried crispy then crumble.
HEAT bacon fat in the skillet to medium heat.
ADD flour and mix with the bacon fat to form the roux.
COOK about 5 minutes.
ADD in the tomatoes and cook about 5 more minutes.
WHISK in milk and bring up to medium heat. The gravy should begin to thicken.
ADD in sugar, basil and salt and pepper to taste.
ADD in crumbled bacon. The gravy and grits should stay warm while you fry the Catfish in a separate skillet.
HEAT about 1 inch of oil to medium high heat.
DREDGE each fillet into the fish coating before adding to the hot oil.
FRY for 2-3 minutes on each side until golden brown.
REMOVE to a paper-lined platter to drain.
TO SERVE, begin with a base of grits on the plate.
ADD the Catfish and top with the gravy.
SERVE with French bread.