Sosa

Anyone know if it is possible to have the wordpress posts displayed like this?

i have three categories

Cat 1
Cat 2
Cat 3

i want it to post out
Cat 1
Post 1 in cat 1
Post 2 in cat 1....up to the last 10 or even better x amount
Cat 2
Post in cat 2
post in cat 2...and so on like cat 1 and cat 3 will be the same

Is this possible? we have tried on the wordpress forums with no answers or help really. Thought I would ask here!