Step 1: Preheat the oven to 180°C (350°F) and lightly grease a baking dish.
Step 2: In a medium saucepan, bring water or stock and salt to a boil. Slowly whisk in the grits, reduce heat, and cook while stirring until thick and creamy.
Step 3: Stir butter, shredded cheddar cheese, and milk into the hot grits until smooth and well combined. Remove from heat and allow to cool slightly.
Step 4: In a skillet, heat olive oil or butter over medium heat. Add garlic and cook briefly until fragrant.
Step 5: Add shrimp, smoked paprika, cayenne, and black pepper. Cook for 2–3 minutes per side until shrimp are just pink. Remove from heat.
Step 6: Stir the beaten eggs into the slightly cooled grits, mixing well to avoid scrambling.
Step 7: Fold the cooked shrimp into the grits mixture.
Step 8: Transfer the mixture to the prepared baking dish and spread evenly.
Step 9: Bake uncovered for 30–35 minutes until the casserole is set and lightly golden on top.