Scrape kernels from cobs (should yield 2 cups). In skillet, melt butter, saute onion in butter until transparent. Add green pepper, saute until tender. In a 3 quart sauce pan, stir 1-1/2 quarts of milk and the corn over medium heat until boiling. Reduce heat and simmer 15 minutes. Stir together the remaining milk and the corn starch until smooth. Add to corn mixture. Stir in bacon, salt, sugar, pepper, onion, and green peppers. Bring to a boil, stirring constantly and boil for 1 minute. Serves 8-10.