In a large skillet, cook bacon over medium heat, turning occasionally until brown and crisp. Drain on paper towels, then finely chop. Pour off fat from skillet, the carefully wipe clean with a paper towel. Return the skillet to medium heat and add the corn, stirring occasionally until the kernels are mostly golden-brown, about 10-15 minutes. Remove from the heat and set aside.

In a medium saucepan, bring water, butter, sugar, and salt to a boil, stirring until butter is melted. Add flour all at once and cook over medium heat, stirring vigorously with a wooden spoon, until mixture pulls away from the sides of the pan and excess moisture has evaporated, about 2 minutes.

Transfer the mixture to the bowl of a stand mixer fitted with the paddle attachment and beat on medium speed for about 30 seconds to cool slightly. Add eggs one at a time, beating well after each addition. (Batter will appear to separate at first, but will then become smooth). Mixture should be stiff enough to hold soft peaks and fall softly from the spoon. Stir in bacon, corn, mustard, cheese, chives, black pepper, and cayenne.