Add popcorn to a large food processor. Pour water over kernels and blend until smooth. Using a mesh strainer, press the grits though, catching all of the large kernels. Add grits to saucepan, stir in milk and cheese. Simmer until mixture begins to thicken. Remove from heat, stir in butter and salt. Set aside.
In a mixing bowl, combine shrimp, garlic powder, cayenne, paprika, salt, and half the olive oil. Heat a skillet over medium-high heat. Add remaining olive oil and shrimp. Saute until opaque, about 2 minutes per side.
Top grits with shrimp. Garnish with bacon, chili flakes, chili oil, and parsley.