Mix together the sherry and the sugar then add the queen scallops. Allow to marinade for at least an hour. Cut the bacon rashers (slices) in half lengthways then again in half across the width (4 strips of bacon from each rasher). Place one queen scallop onto a water chestnut and wrap around the circular side with a strip of oak-smoked bacon, securing with a toothpick or skewer. Do the same for each queenie. Grill (broil) all of the queenie parcels until the bacon is cooked - about 5 - 6 minutes. Serve hot with a little Basmati rice.