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Heat the oven to 350 degrees.
Place the butter and cream cheese into a pot over medium heat on the stove. Stir until melted.
Whisk in the milk until smooth and creamy.
Stir in the salt, pepper and cayenne pepper if using.
Fold the corn into the mixture.
Layer the mixture in the bottom of a well greased 9x9 baking dish, and sprinkle with the cheddar cheese.
Bake for 20 minutes and then serve immediately.