Bring water, 1 cup of stock, and a heavy sprinkling of salt to a rolling boil.
Slowly whisk in grits and cook according to package directions, whisking constantly.
Once thick and cooked through, stir in milk and cheese.
Remove from heat and immediately pour into 24 large muffin cups sprayed with non-stick spray. Cool completely. About 15-20 mins.
When grit cakes are cooled, heat 2 teaspoon of olive oil in a large skillet over medium-high heat and cook cakes until golden brown on both sides. Note= you may need to cook these in two batches!
Once browned, place on cookie sheet(s).
Pour the last teaspoon of oil into the pan, sprinkle the shrimp with a pinch or two of salt & pepper, and add the shrimp to the oil.
Cook shrimp 1-1 ½ mins on each side or until pink and opaque. DO NOT OVERCOOK!!!
Remove shrimp, place one on top of each grit cake, and transfer to the oven to keep warm.
Add the bacon pieces to the pan and fry for 3-4 mins. Add bell pepper, onion, and garlic to the pan and sauté for another 3-4 mins.
Once the bacon is browned & the veggies are cooked through, stir in the flour and cook an additional two minutes.
Slowly whisk in the remaining cup of stock, bring up to a boil, and lower heat. The gravy should be thick and bubbly at this point.
Right before you are ready to serve, stir in the basil, parsley, and Italian seasoning as well as more salt & pepper if it needs it.
Transfer the warm shrimp & grit cakes to a serving platter and spoon the gravy over each.