Combine evaporated milk, grits, chicken broth, and butter in a saucepan over medium-high heat; bring to a boil. Cook, stirring constantly, until thickened, 5 to 7 minutes. Add Cheddar cheese and stir until incorporated. Remove from the heat and set aside.

Place bacon in a large skillet and cook over medium-high heat, turning occasionally, until crisp and browned, about 3 minutes per side. Drain bacon slices on paper towels and chop when cool enough to handle.

Add bell peppers to the bacon grease. Add shrimp and taco seasoning. Cook and stir until peppers are heated through and shrimp are bright pink on the outside and the meat is opaque, 3 to 5 minutes. Stir in chopped bacon.