Set your oven to 350°F and let it warm up while you prep the ingredients. Dice the green onion and set it aside for the final garnish.

In a medium bowl, combine the cream cheese, shredded cheddar cheese, garlic powder, and onion powder. Use a spatula or hand mixer to blend everything together until smooth and evenly combined. The mixture will be thick but should spread easily.

Transfer the cheese mixture into a small oven-safe baking dish, spreading it evenly to ensure an even bake. Place the dish in the preheated oven and bake for 10 minutes, just long enough to warm the cheese and allow the flavors to meld.

Carefully remove the baking dish from the oven. Using a spoon or spatula, spread the pepper jelly evenly over the warm cheese layer. The heat will help soften the jelly, making it easier to spread.

Return the dish to the oven and bake for another 5 minutes. This short bake time allows the pepper jelly to slightly melt into the cheese, creating that perfect sweet and spicy contrast.

Once baked, remove the dip from the oven and sprinkle the diced green onions on top for a fresh pop of flavor. Serve immediately with crackers, pita chips, or sliced veggies. Enjoy while warm for the best gooey, melty bite!