Add bacon to insert. Turn on Sauté function and select “Normal” heat. Allow bacon to sit undisturbed until it gets cooked on one side, about 8 minutes. Then stir your bacon pieces until all pieces are cooked. Remove from insert and place on a paper towel to drain.
Remove excess bacon grease from Instant Pot, leaving about 2 Tbsp.
Add chopped jalapeño to the insert and stir until softened, about 2 minutes.
Add grits and stir for about 10 seconds.
Add water and use wooden spoon to stir up any brown bacon bits stuck to the bottom of the pan. Stir in heavy cream and salt.
Press Cancel on your instant Pot. Then select “Pressure Cook” and cook on High Pressure for 10 minutes. Once done, allow your Pressure Cooker to natural release for 10 minutes, then manually release any remaining pressure.
Open lid and stir in cheddar cheese and cream cheese.
Allow grits to cool for 5 minutes.
Top with pieces of bacon. Enjoy :)