In a large saucepan, cook bacon until crisp. Using a slotted spoon, remove from pan and set aside.
Discard all but 1 tablespoon drippings and add onion, pepper, and nutmeg to saucepan. Cover and cook over low heat 10 minutes, or until onion is soft. Stir in flour and cook 3 minutes more. Whisk in broth, increase heat, and bring to a boil. Reduce heat and simmer 5 minutes. Stir in potatoes and corn and cook 5 minutes more. Stir in cream and cooked bacon.