Cook three slices of bacon. Cool, crumble the bacon, and set aside.
Roast whole jalapeño peppers over an open flame. You can use tongs to hold them over the flame on a gas stove, or char them on the grill or under the broiler. Do the same thing with the corn.
Using a sharp knife, cut the kernels off the cob. Discard the cob and set the kernels aside.
Cut the jalapeños in half lengthwise. Scoop out the seeds and membranes and discard them. Dice the remaining part of the peppers into small pieces and set aside. Wash hands in warm soapy water and do not touch your eyes.
Measure one cup of grits and set aside. (Follow directions on the package for amounts of grits and water for four servings. These may be different than the brand I used)
Measure water according to package directions and pour into a mediun saucepan. Add the salt and bring the water to a boil over high heat.
Slowly pour the grits into the boiling water, whisking constantly. Reduce the burner to low and cook until most of the water is absorbed but the grits are still bit runny. Whisk every 30 seconds for quick-cooking grits, longer for coarse grits. If the grits get too thick, add a bit of water to thin. You want them loose enough to run off the spoon, not thick like oatmeal. They will thicken when the cheese is added.
Add the cream cheese and whisk until melted and thoughly integrated into the grits. Remove from heat and add the grated cheddar cheese, mixing to completely melt the cheese.
Add the corn, diced jalapeños, and half the crumbled bacon to the pan and fold them in until just incorporated.
Taste the grits and add more salt to your personal preference. Spoon the grits into a serving bowl, lay the butter on the hot grits to melt. Sprinkle the remaining bacon over the top and serve piping hot. Serves four to six people depending on whether they are a side dish or you add a topping and make them the main dish.