In a large pot over medium heat add the beer and 2 cups of warm water. Bring to a simmer and slowly add the grits. Cook over a low simmer, stirring occasionally, until thick and tender. Add water ¼ cup at a time when the grits begin to dry out.
Once the grits are cooked stir in the cheddar, butter, cream, salt and pepper.
Cook the bacon in a skillet over medium heat (don’t turn the heat too high, medium heat will render more fat than high heat) until the bacon is crispy. Remove the bacon, set aside. Pour off all the bacon fat except about 1 tablespoon. Return pan to heat, melt the butter in the skillet.
Add the shrimp and spices, toss to coat. Pour in the beer, cooking until shrimp are cooked through, about 5 minutes.
Add the grits to serving bowls, top with shrimp, bacon and chives.