Place shrimp into a bowl. Add paprika and season with salt and pepper.
In a saucepan, bring the water to a boil. Add riced cauliflower and cook for 8-10 minutes. When cauliflower starts to soften, add butter, heavy cream, shredded cheese, garlic, salt and pepper and stir well. Simmer for 3-4 minutes or until thickened and cauliflower is tender. Add more water if needed to prevent burning.
Melt a tablespoon of butter in a frying pan over medium heat. Add shrimp and cook for 1.5-2 minutes per side. Add garlic powder and chopped parsley. Give it a good stir and cook for a minute more.
Spoon grits into a plate or bowl. Top with shrimp, sprinkle with chopped parsley, garnish with a lemon wedge and serve immediately.