Preheat oven to 350 degrees. Spray an 8"x 8" casserole dish with nonstick cooking spray and set aside.
Open the can of corn and drain the liquid into a one cup measuring cup. Add enough water to the corn liquid to equal one cup.
In a small bowl, add the 1 cup corn water, egg and cornmeal. Mix well and then set aside.
In a medium sauce pan, add butter, diced onions, chopped bell peppers, salt and pepper. Saute for about 5 minutes until the onions are translucent and the peppers are soft.
Add the evaporated milk and bring to a boil.
Quickly add the cornmeal mixture and reduce heat to low. Cook for about 5 minutes, stirring often so it doesn't burn.
Add the reserved corn and continue cooking and stirring for another 5 minutes until it starts to pull away from the sides of the pan.
Remove from heat and stir in 1/2 cup cheddar cheese, parsley and sugar. Mix well.
Spread in the prepared pan and sprinkle with the remaining 1/2 cup cheddar cheese.
Bake for 30-40 minutes until it's golden brown on top and the center is set. Let sit for about 20-30 minutes before cutting it.