In a large pot, saute garlic and 1 tbsp olive oil for 2-3 minutes or until fragrant.
Pour the water and milk into the pot and bring to a boil. Stir in grits and reduce to a simmer. Cover and cook for up to 20 minutes or until thick.
While the grits are cooking, ina small pan over medium heat, sauté bell pepper, onions, and mushrooms in remaining olive oil until soft. Add a dash of salt and pepper and remove from the pan.
Reduce the heat to low and melt the butter. Add the eggs and cook to your liking. Set aside.
When the grits are done cooking add cheddar cheese and stir well until melted. Spoon grits into each bowl. Add bacon, sautéed veggies, and eggs and garnish with green onions.