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

Gradually mix in the shredded sharp cheddar cheese, ensuring it's well combined.

Slowly add the all-purpose flour, salt, and garlic powder to the mixture, stirring until a soft dough forms, about 5-7 minutes.

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

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

Scoop dough into 1-inch balls and place them 2 inches apart on the baking sheet. Press your thumb into the center of each ball.

Spoon ½ teaspoon of hot pepper jelly into each indentation.

Bake for 13-15 minutes until the edges are golden brown and cheese is bubbly.

Allow to cool for 5 minutes, then transfer to a wire rack. Serve warm or at room temperature.