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. Keep warm.
Cook bacon in a large skillet until crisp; remove bacon, and drain on paper towels, reserving 1 tablespoon drippings in skillet. Crumble bacon, and set aside.
Sprinkle shrimp with pepper and salt; dredge in flour.
Sauté mushrooms in hot drippings in skillet 5 minutes or until tender. Add green onions, and sauté 2 minutes. Add shrimp and garlic, and sauté 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 particles from bottom of skillet.
Serve shrimp mixture over hot cheese grits. Top with crumbled bacon; serve with lemon wedges.
--Adapted from Bill Neal and Southern Living magazine
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