Preheat oven to 350° F. Prepare muffin tin by generously greasing or lining with foil liners greased with nonstick spray.
To prepare red pepper butter, purée butter, red pepper and garlic powder in food processor or blender; set aside.
To prepare muffins, dice 7 slices of bacon; set aside. Cut remaining bacon strip into 12 squares; set aside. In medium bowl, combine biscuit mix, cornmeal, diced bacon and 1-1/3 cups Pepper Jack. Add milk, melted butter and egg; stir just until moistened. Scoop batter into 12 muffin cups. Sprinkle remaining cheese over muffins, and place one bacon square on each. Bake 15 to 20 minutes until golden brown. Let cool 10 minutes. Remove from muffin pan and serve with red pepper butter.