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PdfSlice off the kernels from each ear of corn (you should have about 4 cups). Then, with the flat edge of the knife or the edge of a small spoon, scrape each corn cob over a plate to collect the starchy 'milk.' Discard the cobs.
Heat the bacon in a large nonstick skillet over medium. Cook until crisp, stirring occasionally, 8 to 10 minutes. Transfer bacon to a plate lined with paper towels. Drain any fat into a small heatproof bowl, leaving about 2 tablespoons in the skillet.
Add the butter to the skillet to melt. Add shallots and sauté until tender, about 3 minutes.
Increase the heat to medium-high. Add corn kernels to the skillet, along with the reserved starchy milk, the salt, paprika, pepper and sugar. Cook, stirring frequently, until corn is softened and lightly browned in spots, 5 to 7 minutes.
In a small bowl, combine ¾ cup water with the cornstarch; stir until well combined to create a slurry.
Add the slurry to the corn mixture and cook, stirring constantly, until it’s smooth, 1 to 2 minutes.
Stir in cooked bacon, red peppers and half the scallions to heat through, 1 to 2 minutes. Serve topped with remaining scallions.