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Bring the first 4 ingredients to a boil in a medium saucepan; gradually whisk in the grits; reduce the heat and simmer, stirring occasionally, 10 minutes or until thickened; add the cheddar cheese and the next 4 ingredients; set aside but keep warm.
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Cook the bacon in a large skillet until crisp; remove and drain on paper towels, reserve 1 tablespoon of drippings in skillet; crumble bacon and set aside.
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Sprinkle the shrimp with pepper and salt; dredge in flour.
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Saute the mushrooms in the hot drippings in skillet 5 minutes, or until tender; add green onions and saute 2 minutes; add the shrimp and garlic and saute 2 minutes or until the shrimp are lightly brown; stir in the chicken broth, lemon juice and hot sauce and cook 2 more minutes, stirring to loosen browned bits from skillet.
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Divide the grits into 4 large, shallow soup bowls; divide the shrimp mixture into four servings and place on top of the grits; top each serving with crumbled bacon and serve with lemon wedges.