Sauté bacon, onion and bell peppers until soft. Remove from heat and add flour, stirring until well blended.
Over medium heat, gradually add cream and milk stirring constantly until thickened.
Add peppers and cheese. Season to taste and adjust peppers to achieve the heat you like. Top oysters with mixture and bake for 10 minutes at 350° F.
NOTE: Sauce may be made up to two days in advance.Makes 4 Source: