Preheat oven to 350°F (175°C) and line a baking sheet with parchment paper.
In a large mixing bowl, combine softened cream cheese, unsalted butter, and shredded cheddar until smooth and creamy.
Add all-purpose flour, garlic powder, onion powder, salt, and black pepper; stir until a soft dough forms.
Chill the dough in the refrigerator for 15-20 minutes to make it easier to handle.
Scoop tablespoon-sized portions and roll into balls; place on baking sheet spaced about 2 inches apart.
Using your thumb or a spoon, press gently into the center of each ball to create a thumbprint.
Bake for 15-18 minutes until edges are golden brown.
Remove from oven and fill each thumbprint with hot pepper jelly.
Return to oven for 2-3 minutes to warm the jelly.
Allow appetizers to cool slightly; garnish with fresh herbs if desired and serve warm.