FOR THE GRITS: Melt 1 tablespoon butter in medium saucepan over medium heat. Add grits and cook, stirring often, until fragrant, about 3 minutes. Add milk, water, and salt. Increase heat to medium-high and bring to boil. Reduce heat to low, cover, and simmer, whisking often, until thick and creamy, about 25 minutes. Remove from heat, stir in remaining 2 tablespoons butter, and season with salt and pepper to taste. Cover and keep warm.

FOR THE HAM: Pat ham dry with paper towels and season with pepper. Cook bacon in 12-inch skillet over medium heat until crisp, about 5 minutes. Remove bacon from skillet (leaving fat behind) and reserve for another use. Add ham to skillet with bacon fat and cook until well browned on first side, about 5 minutes. Flip ham and cook on second side until lightly browned, about 2 minutes. Transfer ham to platter and tent loosely with aluminum foil.

FOR THE GRAVY: Add onion to now-empty skillet and cook until just beginning to brown, about 1 minute. Stir in flour and cook for 15 seconds. Whisk in broth and maple syrup, scraping up any browned bits. Bring to simmer and cook until mixture is reduced to ¾ cup and slightly thickened, 5 to 7 minutes.

Off heat, whisk in butter, one piece at a time, and espresso powder. Season with pepper to taste. Discard any juices on ham platter. Carve ham steak into 4 equal portions. Pour red-eye gravy over ham. Serve with grits.