Bring 2 cups of the chicken broth, the milk (2 cups), 3 tablespoons of the butter, and a pinch of salt to a gentle boil in a medium-sized pot. Add the grits and whisk together. Cover and simmer for 15-20 minutes, or until grits are fully cooked, soft, and creamy, whisk every 5 minutes or so.
Meanwhile, cook the 4 bacon strips until crispy in a skillet. Set aside on a paper towel-lined plate. Once cool, chop into small pieces.
Drain all but 2 tablespoons of the bacon grease from the skillet.
Rinse and pat dry the shrimp. Season with salt and pepper. Cook in the bacon grease until only just cooked- about 2 minutes per side.
Add the remaining tablespoon of butter and 1/2 cup of chicken broth to the shrimp and stir until melted and the broth is heated through.
When the grits are finished cooking, remove from heat and stir in the cheese (1 cup) until melted.
Serve the shrimp mixture over the grits, make sure to spoon some of the sauce over the grits, and sprinkle with the bacon pieces and sliced green onions if desired. Serve immediately.
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