In a Dutch oven or large pot, cook the bacon over medium heat until crisp, stirring occasionally. Remove the bacon to a paper towel-lined plate and discard all but 1 tablespoon of the drippings.
Add the corn, red pepper and yellow pepper to the bacon drippings; increase heat to medium-high and cook, stirring frequently, until the vegetables are tender, 5 to 6 minutes.
Stir in the remaining ingredients, including the cooked bacon, to combine and bring to a boil. Reduce the heat to low, cover and simmer until thickened, about 8 to 10 minutes. Serve warm.
Notes
Corn: Substitute 5 cups of frozen corn or drained and rinsed canned corn for the fresh corn kernels.
Green Chiles: For a milder dish, omit the green chiles. If you want a bigger kick, substitute fresh Hatch chiles.
Half and Half: Substitute half whole milk and half heavy cream.
Store: Keep this corn salad in an airtight container in the refrigerator for up to up to 3 days.
Reheat: You can heat up leftovers on the stove or in the microwave. On the stove, heat in a saucepan over medium-low heat until warmed through, about 5 minutes. In the microwave, heat in 30-second intervals, stirring between rounds until warmed through.