Cook bacon in a skillet over medium heat 3 minutes or until lightly browned, stirring frequently. Add bell peppers; cook 10 minutes, stirring occasionally. Add tomatoes; cook 5 minutes. Add shrimp; cook 3 minutes. Stir in green onions; keep warm.
Combine milk and broth in a saucepan. Bring to a boil, and stir in grits. Bring to a boil; reduce heat, and cook for 5 minutes or until thick, stirring occasionally. Stir in cheese. Serve shrimp mixture over grits.