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To ensure uniform pieces of fish, we prefer to purchase a whole center-cut salmon fillet and cut it into four equal pieces. Garnish with chopped fresh parsley.
Melt 4 tablespoons butter in large saucepan over medium-high heat. Add corn, bell pepper, shallot, 1¼ teaspoons salt, and ¼ teaspoon pepper and cook, stirring occasionally, until softened, 5 to 8 minutes. Add milk and water and bring to boil. Slowly whisk in grits. Reduce heat to medium-low and cook, stirring often, until grits are thick and creamy, 5 to 7 minutes. Off heat, stir in lemon juice and season with salt and pepper to taste. Cover and set aside.
Meanwhile, combine lemon zest, Old Bay, and 3 tablespoons butter in small bowl. Sprinkle salmon all over with remaining ½ teaspoon salt and ½ teaspoon pepper. Melt remaining 1 tablespoon butter in 12-inch nonstick skillet over medium-high heat. Add salmon and cook until well browned and centers of fillets register 125 degrees (for medium-rare), about 7 minutes per side.
Divide grits among serving bowls. Arrange salmon fillets over grits and immediately dollop with butter mixture. Serve with lemon wedges.