In a large mixing bowl, combine softened cream cheese and unsalted butter, using a hand mixer to beat until smooth and creamy. Gradually mix in the shredded sharp cheddar cheese, all-purpose flour, salt, and garlic powder until a soft, cohesive dough forms.

Cover the bowl with plastic wrap and refrigerate for at least 30 minutes.

Preheat your oven to 375°F (190°C). Scoop out approximately 1-inch portions of chilled dough, roll them into balls, and place on a lined baking sheet.

Create a slight indentation in the center of each dough ball with your thumb.

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

Transfer the baking sheet to the preheated oven and bake for 13-15 minutes or until the edges turn golden brown.

Allow to cool on the baking sheet for 5 minutes, then transfer to a wire rack. Garnish and serve.