To make the grits, begin by bringing the chicken broth and milk to a gentle simmer in a medium pot. Slowly whisk in the grits to avoid clumping, then reduce the heat to low and cook them for 15 to 20 minutes, stirring frequently until they become thick, smooth, and creamy. Once the grits reach your desired texture, stir in the butter, smoked gouda, bacon sea salt, black pepper, and hot sauce if using. Taste and adjust the seasoning as needed, and keep the grits warm on low heat while you prepare the shrimp.
For the shrimp, pat them dry and season with Cajun seasoning and smoked paprika. Heat a skillet over medium-high heat and add the butter and olive oil. Once hot, add the shrimp and sear for one to two minutes per side, just until they turn opaque and lightly browned. Remove the shrimp from the skillet and set aside.
In the same skillet, add the diced bell pepper and onion, cooking them for one to two minutes until they begin to soften. Add the minced garlic and sauté briefly until fragrant, then pour in the chicken broth to deglaze the pan, scraping up any browned bits for extra flavor. Stir in the lemon juice, green onions, parsley, and crushed red pepper flakes if you want extra heat. Return the shrimp to the skillet and toss them in the sauce until fully coated and warmed through.
To serve, spoon the creamy smoked gouda grits into bowls and top them with the Cajun shrimp. Pour the garlic butter pan sauce over the top, then garnish with fresh green onions or parsley.