In a large mixing bowl, beat the softened cream cheese and butter until smooth and creamy.

Gently fold in the shredded cheddar cheese, mixing until fully combined.

Gradually add the all-purpose flour, salt, and optional garlic powder. Mix until a soft dough forms.

Cover the bowl with plastic wrap and chill the dough in the refrigerator for at least 30 minutes.

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

Scoop the chilled dough into 1-inch balls and place them on the prepared baking sheet. Use your thumb to create an indentation in the center of each ball.

Spoon about ½ teaspoon of hot pepper jelly into each indentation.

Place the baking sheet in the preheated oven and bake for 13–15 minutes, or until the edges are golden brown.

Let the appetizers cool on the baking sheet for 5 minutes before transferring them to a wire rack to cool completely.

Optional: Garnish with fresh thyme or parsley before serving.