Make the Grits

1. In a medium saucepan, bring the chicken stock and water to a simmer. Slowly whisk in the grits and immediately reduce the heat to low to prevent splattering. Cook, stirring often, until thick and creamy (about 5–7 minutes).
2. Add both the white and sharp cheddar cheeses, butter, and black pepper. Stir until fully melted and combined. Taste and add salt if desired. Cover and keep warm. If the grits thicken too much, stir in a little milk to loosen to your preferred consistency.

Prepare the Bacon and Veggies

1. In a large skillet over medium heat, cook the diced bacon until crisp. Use a slotted spoon to remove the bacon and set aside, leaving the bacon fat in the skillet.
2. Add the diced onions and cook for about 5 minutes, until soft and translucent. Stir in the roasted red bell peppers and cook for 2–3 more minutes. Add the minced garlic and sauté until fragrant, about 1 minute. Remove skillet from heat.

Cook the Shrimp

1. In a bowl, toss shrimp with salt, pepper, onion powder, and smoked paprika.
2. Heat olive oil in a separate sauté pan over medium-high heat. Add the shrimp and cook for 2–3 minutes per side, or until pink and opaque. Remove from pan and set aside.

Build the Sauce

1. Return the skillet with the bacon, onions, and peppers to medium-low heat. Add the cooked shrimp and all the cold butter cubes. Stir constantly as the butter melts and emulsifies, creating a silky, rich sauce. Squeeze in fresh lemon juice to brighten the flavors. Let simmer gently for 2–3 minutes to bring it all together.

Assemble and Serve

1. Spoon the creamy cheese grits into bowls. Top with the saucy shrimp mixture and garnish with chopped parsley. Serve hot and enjoy immediately.