In a cast iron or non stick skillet over medium heat, add the the bacon and cook, when it just starts to crisp, add the jalapeño and continue cooking.
When the bacon is fully cooked, add the flour and mix with the bacon and jalapeño, fully coating them. Allow the flour to slightly brown, and then slowly add the whole milk a little add a time, whisking it into the flour mixture, only adding more milk when no clumps remain. Continue until all the milk is added. Repeat with the heavy cream.
When all the liquid is added, stir in the frozen corn. Heat through. Season with salt and pepper and then stir in the sugar. Serve warm.
The key to this recipe is the bacon fat to flour ratio. If you use thick cut bacon it will throw that ratio off, so stick with regular bacon.