For the hushpuppies: Preheat frying oil to 360 degrees. In a medium-size mixing bowl, combine measured dry ingredients, using a balloon whisk to blend ingredients thoroughly. Make a well in the center. Add chopped onions, red sweet pepper, jalapeño, egg, bacon fat, chopped bacon, and 1 cup buttermilk. Blend to make a stiff batter. Batter should easily fall from the scoop.
To assemble: Use a 2-ounce scoop to portion batter. Place a frozen oyster in the middle of the scooped batter (if the oysters are large, cut in half). Carefully release each hushpuppy into the hot oil, one at a time. Fry 3½ minutes or until deep golden brown and floats. Place on paper towel-lined plate to drain. Let rest for 5 minutes before serving.