In a mixing bowl, beat together the softened cream cheese and unsalted butter using an electric mixer until smooth and creamy, about 2-3 minutes.

Carefully fold in the shredded sharp cheddar cheese to the mixture and mix thoroughly until well incorporated.

Gradually sprinkle the all-purpose flour, salt, and optional garlic powder into the cheesy mixture, stirring gently until a soft dough forms.

Cover the dough with plastic wrap and refrigerate for 30 minutes.

Preheat your oven to 375°F (190°C) and line a baking sheet with parchment paper.

Once chilled, form 1-inch balls with the dough and place them on the baking sheet, spacing them 2 inches apart.

Gently press down in the center of each dough ball to create an indentation.

Fill each indentation with about ½ teaspoon of hot pepper jelly.

Bake for 13-15 minutes or until edges are golden brown.

Let cool on the baking sheet for 5 minutes, then transfer to a wire rack and garnish as desired.

Serve warm or at room temperature.