Bring 4 cups of water and salt to a boil in a medium saucepan over medium-high heat. Once boiling, slowly whisk in the grits in a steady stream to prevent lumps from forming. Reduce heat to low, cover the pot, and let simmer for about 20 minutes, stirring occasionally to prevent sticking. I always use Bob's Red Mill Corn Grits because they have the best texture and cook evenly.
While the grits simmer, chop the bacon into 1/2-inch pieces and cook in a large skillet over medium heat for about 10 minutes until crisp, stirring occasionally. Remove the bacon with a slotted spoon and set aside on a paper towel, leaving the rendered fat in the pan. Pat the shrimp dry with paper towels and season lightly with salt and cayenne pepper. Mince the garlic and slice the scallions, keeping them separate for now.
Return the skillet with bacon fat to medium-high heat and add the shrimp in a single layer. Cook for about 60 seconds on the first side without moving them, then flip each shrimp. Add the minced garlic, cooked bacon from Step 2, scallions, lemon juice, tabasco, and smoked paprika to the pan. Cook for another 1-2 minutes until the shrimp are just cooked through and pink (they should be opaque but still tender).
Check the cooked grits from Step 1—they should be creamy and tender. Remove from heat and stir in the butter, cream, and freshly grated cheddar cheese until fully incorporated and smooth. I like using Kerrygold unsalted butter for its rich flavor, and freshly grated cheddar from a block gives much better creaminess than pre-shredded cheese. Taste and adjust salt if needed.
Spoon the creamy grits into serving bowls, creating a slight well in the center. Top each portion with the shrimp and sauce from Step 3, making sure to include all the flavorful pan juices. Serve immediately while everything is still hot.