Preheat oven to 400 degrees. Grease nine 2 1/2 inch muffins cups in one muffin pan. In a medium bowl combine flour, cheese, sugar, baking powder and cayenne pepper. Make a well in the center. In a small mixing bowl combine the egg, milk and oil. Add liquid all at once to the dry ingredients. Stir just until moistened. Fold in the bacon. Spoon batter into prepared muffin pan. Bake muffins in a 400 degree oven until golden brown - 20 - 25 minutes. Let stand 3 - 5 minutes in pan, remove from pan. Serve warm.