Cut hot dogs in half horizontally, dry with a paper towel, and insert lollipop stick in the cut end.

In a medium bowl, whisk together cornmeal, flour, sugar, baking powder, and salt.

In a separate medium bowl, whisk egg and milk until smooth then stir in chiles and cheese. Add dry to wet ingredients and stir to combine. Pour batter into a tall pint glass.

Heat oil in a heavy-bottomed pot over medium heat until the deep-fry thermometer reads 350°F.

In batches, dip each hot dog into batter and fry in hot oil until golden on all sides, about 3 minutes. Transfer to a paper-towel lined plate. Serve warm with mustard for dipping.