Line a baking sheet with parchment paper. Set aside.
In a medium bowl, stir together creamed corn, corn kernels, ¼ cup flour, and a ½ teaspoon each salt and black pepper. Scoop mixture into small mounds, approximately 1 tablespoon each, onto a prepared baking sheet. Freeze until firm, approximately 1 hour.
Place cornmeal in a small bowl. In another small bowl, combine remaining 1 cup flour, remaining 1 teaspoon salt, remaining ½ teaspoon pepper, sugar, and red pepper. In a medium bowl, whisk together milk and egg.
In a large stockpot or Dutch oven, pour oil to a depth of 3 inches, and heat over medium heat until a deep-fry thermometer registers 350°. You may also use a deep fryer.
Dredge each frozen corn nugget first in flour mixture, then milk mixture, then cornmeal. Drop into the hot oil, and fry until golden brown, approximately 4 minutes. Drain on paper towels.