Preheat oven to 400°F.
In a 2-quart saucepan, sauté green onions in about 1 tablespoon of the butter over medium heat. Add remaining butter, water and cayenne pepper; bring mixture to a boil.
Remove from heat and stir in all the flour at one time, using a wooden spoon. Beat vigorously.
Return to heat and cook over low heat until the mixture forms a thick ball that pulls away from the sides of the pan. Remove from heat.
Add eggs one at a time, stirring mixture until the egg is completely absorbed before adding the next. Stir in cheddar cheese and bacon.
Using two teaspoons (piping mixture through a pastry bag is another option), form teaspoon-sized mounds of pastry about 1¼ inch apart on a lightly greased or parchment lined cookie sheet.
Bake 15-20 minutes or until puffed and golden brown. Cool on wire racks. Yields 5 dozen puffs.
Baked puffs can be thoroughly cooled, wrapped airtight and frozen; reheat about 5 minutes in a 400°F oven.