Preheat oven to 375F. Coat a 9 x 13-inch baking dish with nonstick cooking spray.
Heat bacon in a 6-qt. saucepan over medium heat, and cook, stirring, until browned, about 8 minutes. Add butter and garlic, and cook until fragrant, about 1 minute.
Add flour, and cook, stirring, for 1 minute. Whisk in milk, and bring to a boil; cook, stirring constantly, until thickened, about 2 minutes. Add cream cheese, Velveeta, cheddar, and paprika, and cook until smooth.
Remove from heat and stir in corn; season with salt and pepper.
Transfer mixture to prepared baking dish and bake until top is golden brown and bubbling, about 40 minutes. Let cool slightly before serving.