Over medium heat, crisp the bacon. Once cook set it aside & drain the grease from the pan, leaving about a tablespoon. Once cooled, dice the bacon.
While the bacon cooks, dice the onion, bell pepper, jalapeño, and garlic. Add all but the garlic to the pan and sauté until soft. With a couple minutes left, add the garlic. Remove the mixture from the pan & set aside.
In a small saucepan, bring the water to a boil & add a teaspoon of salt. Slowly whisk in the grits and bring the mixture back to a boil. Reduce heat & simmer for 5 minutes, stirring frequently.
Remove the grits from the heat & cover. After about 5 minutes, stir the pepper & onion mixture into the grits, add the butter and cheese. Salt & pepper to taste.
While the grits cook, season the shrimp with a sprinkle of salt and the chili powder. Cook over medium in the same pan as the peppers & onions, using any extra bacon grease you have. Cook for a few minutes per side, or until cooked through.
Spoon the grits into a shallow bowl & top with the shrimp, bacon, and parsley.