For indoor cooking:
Preheat the oven to 350°F. Lightly grease an 8-x-11- inch casserole dish, 10" or 12" Dutch oven.
In a large bowl, combine the hominy and green chilies. Set aside.
Place the bacon in a medium cast iron skillet and begin cooking over medium heat. When the bacon begins to brown, add the onion and cook until the bacon is three-quarters done, about 5 minutes. Remove the skillet from the heat and spoon out and discard about half of the bacon grease.
Pour the contents of the skillet into the hominy mixture and stir together. Stir in the sour cream. Season with salt and pepper to taste.
Scrape the mixture into the casserole dish. Bake for 30 to 40 minutes, or until the mixture is bubbly and the hominy softens slightly.
About 5 minutes before the casserole is finished cooking, sprinkle on the cheese and continue cooking until the cheese melts. Serve hot.