Bring 3 1/2 cups water, milk, and salt to a boil in a large saucepan. Gradually stir in grits. Reduce heat, and cook, uncovered, 35 minutes or until thick, stirring frequently.
Cook bacon in a large cast-iron skillet over medium heat about 6 minutes or until crisp. Remove bacon from pan. Pour drippings into a small bowl (do not wipe pan clean). Increase heat to medium-high. Add tomatoes, cut sides down; cook 2 minutes or until seared. Place arugula in a medium bowl; drizzle with 2 teaspoons bacon drippings and juice. Discard remaining drippings. Spoon 1 cup grits into each of 4 bowls.Top each serving with about 1/4 cup arugula mixture and 1/3 cup tomatoes. Crumble 1 bacon slice over each serving.
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