Cut corn kernels from cob; scrape cobs with back of knife to remove pulp and juice (about 8 cups kernels and liquid); reserve.
Saute onions and green peppers in bacon drippings in large skillet until soft, about 4 minutes. Add tomatoes and sugar; cook uncovered 3 minutes. Reduce heat to medium. Add reserved corn kernels and liquid, the milk, salt and pepper. Cook, stirring constantly, until corn is tender and mixture is creamy, 8 to 10 minutes. Stir in butter.
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