Heat butter in a large saucepan over medium heat. Once melted, add diced jalapenos and minced garlic. Cook until fragrant, about 5 minutes. Stir in chicken broth and milk, then bring to a boil.
Reduce heat to low and stir in grits. Let simmer for 15-20 minutes, stirring occasionally. Once the grits have absorbed most of the liquid, stir in shredded cheddar cheese and season with salt and pepper.
In a food processor, combine White Cheddar Pipcorn and panko. Pulse until finely ground then transfer to a shallow bowl.
Combine cornstarch and cayenne pepper, and beaten egg with water in two shallow bowls.
Season shrimp with salt and pepper. Dredge shrimp in the cornstarch mixture, followed by the egg mixture, followed by the White Cheddar Pipcorn mixture. Repeat until all shrimp are coated.
Heat oil in a large skillet over medium-high heat. Add shrimp and fry until golden, about 1-2 minutes per side.
To serve, divide jalapeno cheddar grits amongst bowls. Top with fried shrimp and garnish with chopped cilantro, sliced green onions, and a sprinkle of cayenne pepper.
Pro Tip: To avoid overcooking shrimp, place shrimp in the skillet clockwise. This lets you know what shrimp will be finished cooking first!