Bring water, milk, salt, and ground white pepper to a boil in a large saucepan; gradually whisk in uncooked grits. Cook, whisking often, 5 minutes or until thickened. Remove from heat. Whisk in cheese and butter, whisking until blended.
For the shrimp:
3 tbsp butter
1 tsp salt
1 tsp pepper
1 tsp crushed red pepper
1 lb shrimp, peeled
Melt butter in pan. Add seasonings and then shrimp. Cook till done, about 5 min.
To serve, put grits in bowl and spoon shrimp (and butter sauce from the pan) over.