01 - In a medium saucepan over medium-low heat, combine the cream cheese and milk. Stir continuously until smooth and fully melted together.
02 - Gradually add the shredded cheddar cheese, stirring constantly until the cheese is fully melted and the mixture is silky smooth.
03 - Stir in the garlic powder, onion powder, smoked paprika, black pepper, cayenne (if using), and salt. Continue to heat gently for 2–3 minutes, stirring frequently to prevent sticking.
04 - Remove from heat and transfer the dip to a serving bowl. Garnish with chopped chives or green onions if desired.
05 - Serve immediately while warm with tortilla chips, breadsticks, or cut vegetables.