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Melt butter in a large saucepan over medium-high heat, Add onion and cook until softened, about 5 minutes. Mix in flour, coating the onion, and cook until no longer dry, about 1 minute. Add broth and bring to a boil, whisking constantly until smooth and thickened.
Reduce heat, add potatoes and simmer until tender, about 20 minutes. Use the back of a wooden spoon to slightly mash potatoes, then stir in corn and milk. Cook another 5 minutes, remove from heat and stir in cheddar cheese. Season with salt and pepper. Ladle into serving bowls and garnish with cayenne and parsley before serving.