Start by grating the sharp white cheddar cheese into a large mixing bowl. Freshly grated cheese melts better and has a more intense flavor than pre-packaged shredded cheese.
Ensure your cream cheese is at room temperature. This will make it easier to mix with the other ingredients and create a smooth, creamy consistency.
Add the softened cream cheese, drained pimentos, mayonnaise, garlic powder, onion powder, and smoked paprika to the bowl with the cheddar cheese.
Using a spatula, mix all the ingredients together until they are well combined. You want a creamy texture with the pimentos and cheese evenly distributed throughout.
Add kosher salt and pepper to taste. This will enhance the flavors, so be sure to taste as you go!
Transfer the pimento cheese to your serving dish and sprinkle the chopped fresh chives on top for a burst of color and fresh flavor.
For the best flavor, let the pimento cheese chill in the refrigerator for at least an hour before serving. This allows the flavors to meld beautifully.