Preheat oven to 375 degrees F. Coat a 2-quart casserole dish with butter. Set aside.
Place bacon in an unheated skillet. Cook bacon on medium heat for 8 to 10 minutes, turning frequently. Once crispy, remove bacon to a paper towel-lined plate to drain. After bacon has cooled enough to handle, roughly chop.
Place a medium saucepan over medium-high heat. To the saucepan add the milk, cornmeal, sugar, salt, and pepper & stir until smooth. Cook mixture, stirring often until thickened and bubbling, about 5 minutes. Remove from heat.
Transfer cornmeal mixture to a mixing bowl. Stir in the eggs and oil. Stir in 3/4 of the bacon (reserving some for garnish), corn kernels, and 1 cup of cheese.
Pour the batter into your prepared dish. Sprinkle the top with remaining 1/2 cup cheese.
Bake for 35 to 40 minutes, or until puffed and browned around the edges. (A knife inserted into the center should come out clean with moist crumbs attached.) Carefully remove from the oven and let cool for at least 5 minutes before serving.
Garnish the top of the spoon bread with reserved bacon and chives. Serve with a dollop of sour cream if desired.