Preheat oven to 350°. In a large saucepan, cook bacon over medium heat until crisp, stirring occasionally. Remove pan from heat. Remove bacon with a slotted spoon; drain on paper towels., Add water, stock, garlic powder and pepper to bacon drippings; bring to a boil. Slowly stir in grits. Reduce heat to medium-low; cook, covered, 5-7 minutes or until thickened, stirring occasionally. Remove from heat., Add Velveeta and butter; stir until melted. Stir in milk. Slowly stir in eggs until blended. Transfer to a greased 13x9-in. baking dish. Sprinkle with bacon and shredded cheese. Bake, uncovered, 40-45 minutes or until edges are golden brown and cheese is melted. Let stand 10 minutes before serving. Freeze option: Cool unbaked casserole; cover and freeze. To use, partially thaw in refrigerator overnight. Remove casserole from refrigerator 30 minutes before baking. Bake grits as directed, increasing time to 50-60 minutes or until heated through and a thermometer inserted in center reads 165°.