In a medium saucepan, bring 4 cups of water to a boil. Gradually whisk in the grits and reduce the heat to low. Simmer the grits for about 20-25 minutes, stirring occasionally until thickened.
When the grits are nearly done, stir in 2 tablespoons of butter and 1 cup of shredded sharp cheddar cheese until melted and well combined. Season with salt and pepper to taste. Keep warm.
In a large skillet over medium heat, cook the chopped bacon until crispy. Remove the bacon with a slotted spoon and drain on paper towels, leaving the bacon drippings in the skillet.
Add the minced garlic to the skillet and sauté for about 1 minute until fragrant. Add the shrimp, paprika, cayenne pepper, salt, and black pepper to the skillet. Cook until the shrimp are pink and cooked through, about 3-5 minutes.
Spoon the cheesy grits into bowls and top with the shrimp mixture. Garnish with crispy bacon, chopped green onions, and serve with lemon wedges on the side.
For added flavor, consider using homemade broth instead of water for the grits.
You can add additional spices or hot sauce for more heat if desired.
Leftovers can be stored in the refrigerator for up to 2 days. Reheat gently before serving.