Step 1: Whisk first 6 ingredients in medium bowl to blend. Whisk buttermilk, egg, and chile in small bowl to blend. Stir buttermilk mixture and cheese into dry ingredients.
Step 2: Add enough oil to deep medium saucepan to reach 1 1/2 inches. Attach deep-fry thermometer to pan; heat oil to 320°F to 330°F over medium heat. Working in batches of 4 or 5, drop batter by tablespoonfuls into oil. Cook until golden, turning occasionally, about 4 minutes. Using slotted spoon, transfer hush puppies to paper towels. DO AHEAD: Can be made 2 hours ahead. Let stand at room temperature. Rewarm until crisp in 375°F oven, 12 to 14 minutes.
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