Grits: In medium saucepan bring broth to a boil. Whisk in grits, milk and salt. Return to a boil while constantly stirring; reduce heat, cover and simmer stirring frequently until all liquid is absorbed and grits are soft, about 15-20 minutes. Stir in pepper and nutmeg. Keep warm over low heat.
Shrimp: In medium skillet, saute’ bacon over low to medium heat until crisp. Remove bacon and drain on paper towels; set aside. Add butter to skillet and stir in mushrooms, onions and garlic; saute’ over medium heat until mushrooms are tender. Stir in shrimp, broth and lemon juice, cook just until shrimp are pink (about 2-3 minutes). Season shrimp with Tabasco, salt and pepper to taste. Stir cheese into grits. For richer consistency, stir in a small amount of the cream. Spoon grits into serving bowls; top with shrimp and bacon. Serve immediately.