Bring first 4 ingredients to a boil in a medium saucepan; gradually whisk in grits; reduce heat and simmer, stirring occasionally, 10 minutes or until thickened; add cheddar cheese and next 4 ingredients; set aside but keep warm.
Cook bacon in a large skillet until crisp; remove bacon and drain on paper towels, reserve 1 tablespoon of drippings in skillet; crumble bacon and set aside.
Sprinkle shrimp with pepper and salt; dredge in flour.
Saute mushrooms in hot drippings in skillet 5 minutes, or until tender; add green onions and saute 2 minutes; add shrimp and garlic and saute 2 minutes or until shrimp are lightly brown; stir in chicken broth, lemon juice and hot sauce and cook 2 more minutes, stirring to loosen browned bits from skillet.
Divide grits into 4 large, shallow soup bowls; divide shrimp mixture into four servings and place on top of grits; top each serving with crumbled bacon and serve with lemon wedges.
Stacy's Notes: Made April 2016, mostly as directed (did use quick grits I keep), except I used about 1 cup of broth at the end and didn't have fresh mushrooms. It made more sauce, but it still needed more (at least for me!). It was delicious though, so definitely make again!
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