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Cook bacon in large skillet on medium heat until crisp. Remove all but 1 tablespoon drippings from skillet. Add onion, bell pepper and garlic; cook and stir 5 minutes or until tender.
Sprinkle with flour and seasonings; cook and stir 1 minute. Gradually stir in stock. Bring to boil. Reduce heat to medium-low. Add shrimp; cook 5 minutes or just until shrimp turn pink, stirring occasionally.
Meanwhile, bring milk, water and sea salt to boil in medium saucepan on medium-high heat. Gradually stir in grits. Reduce heat to low; simmer 12 to 15 minutes, stirring constantly. Serve shrimp and gravy over grits.