My standard shrimp & grits methodology is almost identical to BadRabbit's and seems to be one of the more common preparations here in Georgia. The red pepper and tomatoes provide a nice balance of sweetness and acidity. For the grits I like to simmer equal parts whole milk and chicken stock with some garlic and fresh thyme and then use this liquid to cook the grits. I generally finish the grits with some butter or cream and maybe some freshly grated parm. I'm not sure what others do, but I typically season grits at the end of cooking -- when I season at the beginning they tend to get too salty at the end. Last, the use of stone ground grits (as opposed to quick/instant grits) can't be overemphasized. As a transplanted midwesterner, I used to hate grits until I was exposed to real stone ground grits when I moved south about 16 years ago. As others have noted, Anson Mills produce great stone ground grits.