Cook the bacon in a large skillet over medium heat until crispy, about 8 minutes. Remove and let drain on paper towels, then crumble. Leave the bacon fat in the skillet.
While the bacon cooks, bring chicken broth to a simmer in a saucepan over medium heat. Stir in the stone-ground grits, reduce heat to low, and cover.
Cook the grits, stirring occasionally, for about 20-25 minutes until thick and creamy. Near the end, stir in butter and shredded cheese until melted and smooth.
Meanwhile, season the shrimp with smoked paprika, cayenne, salt, and black pepper. Let sit as you prepare the rest.
Increase the heat to medium-high and add olive oil to the skillet with bacon fat. Add the seasoned shrimp in a single layer, searing for 2-3 minutes per side until pink and slightly charred. Remove and set aside.
Add minced garlic to the skillet and cook for 30 seconds until fragrant, then squeeze in lime juice to deglaze the pan, stirring to lift any browned bits.
Return the cooked shrimp to the skillet, tossing briefly to coat in the smoky, spicy pan juices. Remove from heat.
Divide the creamy grits among bowls, then top generously with the smoky shrimp, crispy bacon, and chopped scallions. Drizzle with hot sauce and a squeeze of fresh lemon juice.
Serve immediately while warm, enjoying the rich, smoky, spicy flavors with contrasting textures and fresh brightness.
