Preheat the oven to 350°F. Butter a 9x13-inch baking dish.
Cook the bacon in a large skillet until crisp. Transfer to a paper towel-lined plate and reserve 1 tablespoon of the bacon fat in the skillet.
Sauté the red bell pepper in the reserved fat until softened, about 4 minutes.
Add the butter to the skillet over low heat. Once melted, stir in the cream cheese until fully melted, then turn off the heat.
Cool the mixture for 5 minutes, then whisk in the sour cream, cream (or milk), and egg until fully combined.
Pulse half the thawed corn in a food processor until the kernels break up but stay chunky.
Stir in all the corn, 6 ounces of the cheddar, about three-quarters of the bacon, about three-quarters of the green onions, and the sautéed peppers. Season with the salt and pepper.
Spread the batter evenly into the prepared baking dish.
Bake for 35 minutes.
Top with the remaining 2 ounces of cheddar and continue baking for 10 to 20 minutes, until the center is set and the edges are lightly browned.
Rest the casserole 10 to 15 minutes before serving.
Whisk together the sour cream, smoked paprika, salt, and lemon juice until smooth for the drizzle.
Top the casserole with the reserved bacon, remaining green onions, and the smoked paprika sour cream drizzle before serving.