Combine the corn, 1½ cups water, salt and sugar in a 10-inch skillet or medium saucepan. Bring the liquid to a boil, then reduce the heat to medium and cook, uncovered, stirring occasionally, for about 15 minutes -- until the corn is tender-crisp and there are about 2 tablespoons of water left in the pan.
Stir in the butter, lime zest, lime juice, cilantro, and cayenne pepper.