Combine first 4 ingredients in a large bowl.
Add egg and milk to dry ingredients, stirring just until moistened. Stir in jalapeño. Let stand 10 minutes.
Pour oil to a depth of 2 inches into a Dutch oven; heat to 375°.
Drop batter by rounded tablespoonfuls into hot oil, and fry, in batches, 2 to 3 minutes on each side or until golden brown. Drain on a wire rack over paper towels; serve immediately.
Note: Keep fried hushpuppies warm in oven at 225° for up to 15 minutes. For testing purposes only, we used White Lily Self-Rising White Cornmeal Mix.