Season the shrimp with the salt, onion powder, garlic powder, smoked paprika, black pepper, and cayenne. Let them stand while you prep everything else.
Make the Grits
Bring the chicken broth and milk to a simmer in a covered saucepan. Whisk in the grits and lower the heat right down.
Cook on the lowest heat, stirring often, until thick and tender, about 25 minutes. Off the heat, stir in the butter, cheddar, salt, and pepper. Cover and keep warm.
Make the Sauce
Cook the diced bacon in a skillet over medium-high until crisp. Remove the bacon, leaving the drippings in the pan.
Add the onion, green pepper, and salt. Saute about 6 minutes, then stir in the garlic for 1 minute.
Add the shrimp and cook until just opaque, 2 to 3 minutes per side. Deglaze with the chicken broth, then stir in the Worcestershire, lemon juice, and butter. Simmer until slightly thickened, then stir the bacon back in with the parsley.
Assemble
Spoon the warm grits into bowls and top with the shrimp and plenty of that bacon sauce.
Video
Notes
Grits: Use stone-ground grits, not instant, for the creamiest texture.Cheese: Stir the cheddar in off the heat so the grits stay smooth, not grainy.No bacon? Start the sauce with 2 tbsp butter and add extra smoked paprika for that smoky flavor.