Bring water, milk and salt to a boil over medium high heat. Stir in grits. Cook, stirring occasionally, 5 to 7 minutes or until thickened. Remove from heat and stir in 3 tablespoons butter and cheese. Set aside and keep warm.
Rinse shrimp, remove tails and pat dry. Fry the bacon in a large skillet until browned. Remove bacon from pan and drain well. Remove most of grease and add remaining 3 tablespoons butter. Melt butter and add shrimp. Cook until shrimp turns pink, approximately 3 minutes. Remove shrimp to plate and keep warm. Add Plentiful Pantry garlic herb sauce packet to pan along with paprika and red pepper. Stir in water and simmer until thickened. Add chopped bacon, scallions and cooked shrimp and sauté until shrimp are warmed thru.
Spoon grits into a serving bowl. Top with shrimp and sauce. Serve immediately.