Preheat your oven to 375°F and lightly spray a 9x13-inch baking dish with cooking spray. While the oven heats, prep all your ingredients: peel and devein the shrimp, then cut into 1/2-inch pieces; finely dice the red bell pepper into 1/4-inch pieces; seed and mince the jalapeno; mince the garlic cloves; chop the bacon into bite-sized pieces; and slice the scallions (keeping whites and greens separate). Shred the gouda cheese fresh to ensure smooth melting. Having everything prepped and ready will make the cooking process seamless and allow you to focus on timing.

In a large skillet over medium heat, cook the bacon pieces until crisp, about 5-7 minutes, then transfer to a paper towel-lined plate, leaving the rendered fat in the pan. Add the butter to the bacon fat and let it melt, then add the diced bell pepper, minced jalapeno, and the white parts of the scallions. Sauté this mixture for 4-5 minutes until softened and fragrant, stirring occasionally. This builds a flavorful foundation by combining rendered pork fat with butter and allowing the vegetables to release their aromatics.

Stir the minced garlic into the vegetable mixture and cook for 30 seconds until fragrant, then add the diced tomatoes with their juice and the chicken broth. Increase heat to medium-high and bring the mixture to a boil. Once boiling, slowly whisk in the grits in a steady stream, stirring constantly to prevent lumps from forming. Return to a gentle boil, then reduce heat to low and simmer for 5-7 minutes, stirring frequently to prevent sticking and scorching on the bottom. I find that using five-minute grits rather than instant gives a much better texture and won't turn into wallpaper paste if you're not perfect with your stirring.

While the grits simmer, bring a pot of salted water to a boil over high heat. Add the shrimp pieces and turn off the heat immediately, letting them sit for just 10-15 seconds—they'll continue cooking from residual heat and stay tender. Drain and rinse with cold water to stop the cooking process. In a small bowl, whisk the cornstarch into the slightly beaten egg until completely smooth with no lumps; this will help bind the casserole and give it the right texture. Timing is critical here: under-cooked shrimp will finish in the oven, but over-cooked shrimp becomes rubbery, so this brief blanch is key.

Remove the grits from heat and let cool for 15 minutes, stirring occasionally to help release steam and prevent a skin from forming on top. Once cooled, season the grits with salt and black pepper to taste. Stir in the cornstarch-egg mixture from Step 4, working quickly and stirring constantly so the egg sets gently throughout rather than forming clumps. Fold in the cooked bacon, brief-cooked shrimp, the reserved green parts of the scallions, 1 cup of the shredded gouda, the dried parsley, and cayenne pepper until everything is evenly distributed throughout the grits.

Pour the grits mixture into the prepared baking dish, spreading it into an even layer. Top with the remaining 1/2 cup of shredded gouda, distributing it evenly across the surface. Bake in the preheated 375°F oven for 30-35 minutes until the top is golden and bubbling at the edges, and the internal temperature reaches 165°F when checked with a meat thermometer in the center. Let the casserole rest for 5-10 minutes before serving—this allows the proteins to set and makes plating cleaner and easier.