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1. Halve, seed, and coarsely chop peppers. In medium saucepan heat 1-34 cups water to boiling. Stir in grits and peppers. Return to boiling. Reduce heat. Simmer, covered, 5 minutes, until most water is absorbed and grits are tender. Stir in cheese. Sprinkle salt and pepper. Cover; keep warm.
2. In bowl toss shrimp with chili powder. Heat 1 tablespoon oil in large skillet over medium-high heat. Add shrimp. Cook and stir 3 to 4 minutes or until shrimp are opaque.
3. In food processor combine remaining oil, cilantro, vinegar, and 2 tablespoons water. Drizzle over shrimp and grits. Serve with lemon and cilantro. Makes 4 servings.