01 - In a medium saucepan set over medium-low heat, combine the softened cream cheese and whole milk. Stir continuously with a whisk or wooden spoon until the mixture is completely smooth and no lumps remain.
02 - Gradually add the shredded cheddar cheese in handfuls, stirring constantly after each addition until fully melted and the mixture achieves a silky, uniform consistency.
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 while stirring frequently to prevent the bottom from scorching.
04 - Remove the saucepan from heat. Pour the dip into a warmed serving bowl and garnish with freshly chopped chives or green onions if desired.
05 - Serve immediately while warm alongside tortilla chips, breadsticks, or crisp cut vegetables such as bell peppers, celery, and carrot sticks.