Begin by softening the cream cheese at room temperature for about 30 minutes until it’s smooth and easy to mix. Place it in a large mixing bowl.
Add the finely grated sharp cheddar cheese to the bowl with cream cheese. Mix with a spatula or wooden spoon until well combined and creamy.
Stir in the smoked paprika and cayenne pepper, adjusting for spice preference. Mix until the spices are evenly distributed and fragrant.
Chop your fresh herbs finely and fold them into the mixture, adding a bright, fresh flavor contrast to the richness.
Shape the cheese mixture into a tight ball using your hands, pressing firmly to ensure it holds together. If the mixture is too sticky, refrigerate for 15-20 minutes to firm up.
Pour the toasted chopped nuts onto a plate and gently roll the cheese ball in the nuts, pressing lightly to coat evenly with a crunchy layer.
Wrap the coated cheese ball tightly in plastic wrap and refrigerate for at least 2 hours, allowing the flavors to meld and the shape to set firmly.
Remove the cheese ball from the fridge about 15 minutes before serving. Let it sit at room temperature to enhance flavor and soften slightly.
Transfer the cheese ball to a serving plate and present with crackers or sliced bread for a deliciously creamy, crunchy appetizer.