In a large skillet, melt 2 tablespoons of unsalted butter over medium heat. Add 1 cup of diced yellow onion, 1/2 cup of diced green bell pepper, and 1/2 cup of diced red bell pepper. Cook until softened, about 5 minutes.

Stir in 2 cloves of minced garlic, 1 tablespoon of Cajun seasoning, and 1/2 teaspoon of smoked paprika. Cook for 1 minute until fragrant.

Add 1 pound of peeled and deveined large shrimp to the skillet. Cook until pink and opaque, about 3-5 minutes.

Pour in 1 (14.5 ounce) can of diced tomatoes, undrained, and 1/2 cup of chicken broth. Bring to a simmer and cook for 10 minutes to allow the flavors to meld.

While the shrimp is simmering, prepare the grits. In a medium saucepan, bring 3 cups of water and 1/2 teaspoon of salt to a boil. Slowly whisk in 1 cup of stone-ground grits. Reduce the heat to low and cook, stirring frequently, until the grits are thick and creamy, about 20-25 minutes. Stir in 1/2 cup of shredded sharp cheddar cheese and 2 tablespoons of unsalted butter until melted.

Serve the shrimp and sauce over the creamy grits. Garnish with chopped fresh parsley and thinly sliced green onions if desired.