In a medium saucepan, bring the water to a boil.
Reduce heat to a simmer, and stir in grits. Cook grits for 7-10 minutes, or until they are tender and the water is absorbed.
Remove from heat and stir in butter, cheese, salt, and pepper. Stir until melted. Set aside.
While grits are cooking, cook bacon in a skillet over medium-low heat until crisp. Remove from pan, crumble, and set aside. Do not drain the skillet.
To the bacon grease in the skillet, add the red pepper flakes and garlic. Cook for 1-3 minutes, or until garlic is just soft.
Add shrimp and cook until opaque and pink, about 3 minutes.
Remove the shrimp mixture from heat, and stir in lemon juice.
Plate by pouring shrimp and sauce over grits and topping with crumbled bacon and scallions.