Add milk, salt, onion powder, garlic powder, and crumbled bacon to a heavy-bottomed skilllet. Bring to a simmer over medium heat.
Stir in the grits. Turn the heat to medium low and cover the pot. Cook, stirring often, until the grits are tender, 7 or 8 minutes.
Turn off the heat and add the cheese and jalapeños. Stir while the cheese melts. Serve hot.