Fry bacon in skillet until crisp. Remove with slotted spoon to paper toweling. Remove 2 tablespoons bacon fat from skillet to small bowl; leave remaining fat in skillet. Add 1/4 cup cracker crumbs to fat in bowl.
Heat fat in skillet. Add onion, pepper and remaining crumbs; sauté 3 to 5 minutes or until softened. Remove from heat. Stir in bacon.
Heat oven to 350 degrees F. Butter 1-quart casserole. In several layers place corn, crumb-bacon mixture, Cheddar, green onion and ham.
Beat egg, cream, milk, salt and pepper in bowl. Pour over casserole. Top with reserved crumb-bacon fat.
Bake in 350 degree F oven 50 minutes, until golden brown. Garnish with pepper strips if you wish. Makes 6 servings.