Pimento Cheese – Budget Bytes

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Traditional Southern Pimento cheese is creamy, tangy, spreadable and best served cold on a club cracker, if you ask me! Before you choose to buy it ready-made at a grocery store, you’ll want to try my super easy recipe made with a handful of simple ingredients: sharp cheddar, cream cheese, mayonnaise, chopped chili peppers, and some pantry seasonings. This little jar of chili peppers may not regularly grace your pantry shelf, but it’s easy to find with the other canned vegetables at the grocery store, and it gives this classic cheese spread its signature sweet pepper flavor and pretty red flecks!

Overhead view of a bowl of chili cheese with celery and crackers.
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Creamy Cheese and Chili Dip

If I had to list the top foods I associate with living in the South, traditional chili cheese would be near the top. It truly is a classic! Sometimes called the “pie of the South,” Pimento Cheese is a creamy cheesy spread that’s just as good with crackers as it is in sandwiches, on burgers or served with crunchy vegetables for parties, potlucks and game days.

The biggest debate with pimento cheese is whether you should use cream cheese or no cream cheese, and I landed right in the middle for this version. Some recipes skip it to keep the cheddar flavor front and center, but I like to use a little because it makes the spread smoother, creamier, and tangier when straight from the fridge. Using only 4 oz. keeps sharp cheddar from burying itself, so you still get bold cheese flavor with a softer, more spreadable texture. It also helps the spread melt nicely if you want to use it in addition to crackers (like in the Chili Grilled Cheese I make in our Homemade Mayonnaise video on YouTube!)

  1. Grate the cheese yourself. Freshly grated sharp cheddar gives the pimento cheese the best texture and flavor. Pre-shredded cheese is convenient, but it’s usually coated in anti-caking ingredients that can make the spread taste a little drier and less creamy.
  2. Make sure the cream cheese is softened. Room temperature cream cheese mixes much easier with mayonnaise. If it’s too cold, you’ll end up chasing little chunks of cream cheese around the bowl instead of getting a creamy base!
  3. Add cheese and peppers. Once the cheddar and chiles go into the bowl, move from beating to delicate folding. This keeps the cheddar shreds and chilies intact, so the chili cheese is creamy but still has the classic chunky texture.
  4. Customize the heat. I add cayenne pepper for a little heat without making the spread too spicy. For extra heat, add 1 to 2 teaspoons hot sauce (any brand), increase the cayenne pepper to ¼ teaspoon, or stir in 1 to 2 tablespoons finely chopped jalapeños without the seeds. Start small, taste and add more if you like it spicier.
  5. Taste before adding salt. I don’t add salt because the cheddar, cream cheese and mayonnaise already provide plenty of seasoning. Taste it after mixing everything, then add a pinch of salt if you need it.

Pimento Cheese


Cost Recipe at $5.74 / serving at $0.71

This Southern Pimento Cheese recipe is creamy, spreadable, and full of tangy cheddar flavor with sweet chilies and simple pantry seasonings!

Overhead view of a bowl of chili cheese with celery and crackers.Overhead view of a bowl of chili cheese with celery and crackers.

  • Gather your ingredients.

  • Grate the sharp cheddar and drain the pot of peppers.

  • Cut the peppers into small pieces.

  • Add softened cream cheese and mayonnaise to a large bowl. Beat using a hand mixer until smooth and combined.

  • Add the shredded cheddar cheese, chopped chili peppers, black pepper, garlic powder, onion powder, and cayenne pepper to the whipped cream cheese mixture. Fold to combine evenly.

  • Serve immediately or cover and refrigerate until ready to serve.

Learn how we calculate revenue costs here.


*I prefer freshly grated cheddar for optimal flavor and consistency. Sharp Cheddar gives this chili cheese a bolder, cheesier flavor, but mild cheddar will also work if you prefer a milder flavor.
**I use Duke’s Mayonnaisewhich is a classic Southern mayonnaise with a rich, tangy flavor. You can use any mayonnaise you like or already have on hand.

Portion: 1serving (¼ cup)Calories: 266kilocalories (13%)Carbohydrates: 3g (1%)Protein: 8g (16%)Fat: 25g (38%)Sodium: 321mg (14%)Fiber: 0.4g (2%)

Nutrition data is automatically calculated using all ingredients listed on the recipe card, including those listed as optional. The percentages have a daily value.

how to make Pimento cheese step by step photos

The ingredients for making southern chili cheese.The ingredients for making southern chili cheese.

Gather all your ingredients.

A bowl of grated cheddar and drained chili peppers.A bowl of grated cheddar and drained chili peppers.

Grate the cheese and drain the peppers: Grate 8 oz. sharp cheddar, then drain a 4 oz. can of chopped chili peppers very well. I like to grate the cheese by hand here because it gives the chili cheese a softer, creamier texture once I mix it all together.

Hands using a knife to slice chili peppers.Hands using a knife to slice chili peppers.

Chop the peppers smaller: Finely chop the peppers so they are evenly distributed throughout the cheese mixture. This gives you little pops of sweet pepper flavor throughout instead of big chunks in just a few places.

Mayo and cream cheese in a bowl with a hand mixer.Mayo and cream cheese in a bowl with a hand mixer.

Whip the creamy base: Add 4 oz. Place room temperature cream cheese and ½ cup mayonnaise in a large mixing bowl. Beat until the mixture is smooth and almost lump-free. Scrape down the sides of the bowl as needed so that no thick pockets of cream cheese remain.

Shredded cheddar and chopped chili peppers add to a bowl of combined mayonnaise and cream cheese.Shredded cheddar and chopped chili peppers add to a bowl of combined mayonnaise and cream cheese.

Fold to combine: Add the grated cheddar cheese, drained chopped chili peppers, ¼ teaspoon freshly ground black pepper, ½ teaspoon garlic powder, ½ teaspoon onion powder, and ⅛ teaspoon cayenne pepper to the bowl. Gently fold everything together until the cheddar is coated in the cream cheese-mayo mixture and the chili peppers are evenly distributed throughout.

Pimento cheese in a bowl.Pimento cheese in a bowl.

Serve or refrigerate: This chili cheese can be served right away, but it becomes even best after chilling in the refrigerator for an hour or so, as the flavors have time to settle down. Enjoy!

Side view of a bowl of southern chili cheese dip with a hand dipping a cracker in it.Side view of a bowl of southern chili cheese dip with a hand dipping a cracker in it.

Presentation suggestions

Pimento cheese is obviously great with club crackers, butter crackers, saltines, pretzels, celery sticks, cucumber slices, mini sweet peppers or whatever veggies you have. It’s made for soaking after all! Add it to a snack platter for parties, potlucks, tailgates, vacations, or casual weekend get-togethers, or turn it into an easy meal. Spread it on toast for a quick lunch, slip it into a sandwich, melt it in grilled cheese, or pour it over burgers for a cheesy topping. My daughter also loves it mixed with scrambled eggs for breakfast!

This recipe, as written, makes 8 servings (¼ cup each) and is very easy to double or halve depending on how many people you are serving. Simply adjust the servings in the recipe card above and the ingredient quantities will automatically update.

Storage Instructions

You can store leftover dip in an airtight container in the refrigerator for up to 4 days. In fact, it’s even better after a little time in the fridge because the garlic powder, onion powder, cayenne pepper, and chili peppers have time to mix into the creamy cheese base! Let it sit at room temperature for about 10 to 15 minutes before serving again so that it softens slightly and becomes easier to scoop. Stir well before serving to recombine.

You can Freeze homemade chili cheese in a freezer-safe container for up to 2-3 months, but I generally don’t recommend it because the cream cheese and mayonnaise can separate and become grainy once thawed. If you freeze it, stir it very well after thawing in the refrigerator and use it in something melted, like grilled cheese, where the texture changes won’t be as noticeable.

Then try these cheese dip recipes!

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