In a medium saucepan cook bacon until crisp. Remove bacon, reserving 1 tablespoon of the drippings in saucepan. Drain the bacon and set it aside.
If using fresh corn, with a sharp knife cut corn from cobs about two-thirds down the kernels; do not scrape cob. (You should have about 1-1/2 cups of corn.) Add the fresh or frozen corn, water, onion, and pepper to the saucepan. Bring just to boiling. Reduce heat. Cover and simmer for 5 to 7 minutes or until corn is crisp-tender.
Add the cream cheese to the undrained corn mixture in the saucepan. Stir over low heat until melted. If necessary, stir in the milk to make corn mixture of desired consistency. Sprinkle with reserved bacon. Makes 4 side dish servings.