01 - In a medium saucepan over medium-low heat, combine the softened cream cheese and milk. Stir continuously until the mixture is smooth and fully melted together.
02 - Gradually add the shredded cheddar cheese in handfuls, stirring constantly after each addition until the cheese is completely melted and the mixture is silky smooth.
03 - Stir in the garlic powder, onion powder, smoked paprika, black pepper, cayenne pepper (if using), and salt. Continue heating gently for 2 to 3 minutes, stirring frequently to prevent sticking or scorching.
04 - Remove the saucepan from heat. Transfer the dip to a serving bowl and garnish with chopped fresh chives or green onions if desired.
05 - Serve immediately while warm alongside tortilla chips, breadsticks, or fresh cut vegetables such as celery, carrots, and bell peppers.