Prep the shrimp: Pat shrimp dry with paper towels. In a bowl, toss with salt, black pepper, smoked paprika, and cayenne if using.
Set aside while you start the grits.
Start the grits: In a medium saucepan, bring chicken broth and milk to a gentle boil. Whisk in grits slowly to prevent lumps. Reduce heat to low and simmer, whisking often, until thick and creamy, about 5–7 minutes for quick grits.
Finish the grits: Stir in butter, cheddar, salt, and pepper.
Adjust seasoning and consistency with a splash of milk if needed. Cover and keep warm on the lowest heat, stirring occasionally.
Optional bacon step: If using bacon, cook it in a large skillet over medium heat until crisp. Transfer bacon to a plate and leave 1–2 teaspoons of drippings in the pan.
If not using bacon, warm olive oil in the skillet instead.
Sauté the shrimp: Add olive oil (if needed) and 1 tablespoon butter to the skillet over medium-high heat. Add shrimp in a single layer. Cook 1–2 minutes per side until pink and just opaque.
Don’t overcrowd; work in batches if necessary. Transfer shrimp to a plate.
Make a quick pan sauce: Lower heat to medium. Add remaining 1 tablespoon butter and the garlic.
Cook 30 seconds until fragrant. Stir in lemon juice and 2–3 tablespoons water or broth to loosen any browned bits. Simmer 30–60 seconds to meld flavors.
Combine: Return shrimp (and bacon, if using) to the skillet, tossing to coat in the sauce.
Taste and adjust salt, pepper, or lemon.
Serve: Spoon grits into bowls. Top with shrimp and pan sauce. Garnish with scallions or parsley and a squeeze of lemon.
Serve hot.