In a small bowl, combine the paprika, garlic powder, onion powder, thyme, oregano, cayenne pepper, black pepper, and salt. Mix well to create a uniform seasoning blend.
Pat the fish fillets dry with paper towels to ensure a crispy crust. Rub the seasoning mixture evenly over both sides of each fillet, pressing gently to adhere.
Heat the olive oil in a skillet over medium-high heat until shimmering. Add the seasoned fillets and cook for 3-4 minutes per side, or until the fish is golden brown and flakes easily with a fork. Remove from the skillet and set aside.
In a saucepan, bring the water or chicken broth to a boil. Gradually stir in the grits, reduce the heat to low, and cook, stirring frequently, until the grits are tender and creamy. This should take about 20-25 minutes. Once cooked, stir in the butter, shredded cheddar cheese, and milk or cream. Season with salt and pepper to taste.
Spoon the creamy cheese grits onto plates. Top each serving with a blackened fish fillet. Garnish with chopped green onions and serve with lemon wedges on the side.