First, preheat your oven to 350°F (175°C). While the oven is heating, take a moment to chop your red bell pepper and fresh jalapeños. If you're using frozen corn, ensure it is fully thawed and drained. For a softer texture, you can briefly sauté the bell peppers and fresh jalapeños before adding them to the sauce.
In a medium saucepan over medium heat, combine the butter and cream cheese. Stir these ingredients frequently as they melt to create a smooth and creamy sauce. This rich base is what gives the corn dish its signature velvety texture, so make sure there are no lumps before moving on to the next step.
Once your cream cheese and butter have melted into a smooth sauce, add the corn, diced red bell pepper, fresh jalapeños, and pickled jalapeños. Season the mixture with paprika, salt, and pepper. Stir everything together until all the ingredients are well combined and coated in the creamy sauce.
Now it's time for the cheese! Stir in about half to three-quarters of your freshly grated sharp cheddar cheese into the saucepan. Continue to stir until the cheese is completely melted and integrated into the sauce. This step makes the dish extra gooey and delicious.
Pour the corn mixture into a casserole dish. Sprinkle the remaining cheddar cheese evenly over the top. Bake for 15-20 minutes, or until the dish is hot, bubbly, and the cheese on top is beautifully melted and slightly golden. Let it rest for a few minutes before serving.