Bring broth to a boil. Add grits. Stir, reduce heat to low, and cover. Simmer for 10 minutes, stirring occasionally.
Meanwhile, in a large skillet, cook bacon over medium heat until bronwed and crisp. Remove to a paper towel-lined plate to drain grease and cool a bit before chopping or crumbling into smaller pieces. Leave bacon grease in skillet.
Add diced apples to bacon grease (you can do this in butter if you prefer) over medium-low heat and saute until tender. Remove with a slotte spoon and drain on a paper towel-lined plate.
When grits have absorbed broth, add salt, sage, milk and pumpkin puree and continue cooking for 5-10 minutes on low. Stir in cheddar and stir until melted. Season with salt and pepper, if desired.
Stir in apples and bacon crumbles, and serve warm!