Edna Lewis & Scott Peacock's Shrimp Grits

INGREDIENTS

• 2 sticks (1 cup) unsalted butter
• 1/2 teaspoon freshly ground black pepper
• 2 cups milk, or more
• 2 cups water
• 2 tablespoons unsalted butter
• Kosher salt
• 1 pound fresh shrimp, peeled and deveined (Scott Peacock likes small, sweet ones like gulf shrimp, but get whatever is freshest)
• 1 cup stone-ground or regular grits
• 1/4 teaspoon cayenne pepper
• 1/2 teaspoon salt
• 2 tablespoons freshly squeezed lemon juice
• 1/4 cup heavy cream
• 1/4 cup sherry