In a pot, bring 4 cups of water to a boil.
Gradually whisk in the grits, reduce heat to low, and simmer.
Stir occasionally until grits are thickened (about 20 minutes).
Add shredded cheddar cheese, mixing until melted and creamy.
In a skillet, cook chopped bacon over medium heat until crispy.
Remove bacon and set aside, leaving the fat in the skillet.
Add minced garlic to the skillet and sauté for 1 minute.
Toss in the shrimp, cooking until pink (about 3-4 minutes).
Stir in lemon juice and smoked paprika; season with salt and pepper.
Serve heated shrimp over a bed of creamy grits, garnishing with bacon and parsley.