Preheat oven to 400 degrees. Reserve 1-2 tablespoons shredded cheese for garnish. Set aside. Combine all remaining ingredients, mixing well. Place in 1 quart baking dish or cassrole. (Or you may use option below) Cover and bake for about 30 minutes or until heated through. Serve with bread or crackers.
OPTIONAL: Dip may be placed in a sour dough bread bowl. If you use this option wrap the whole filled bread bowl with foil and bake for 30 minutes.
Sprinkle baked dip with reserved shredded cheddar cheese to garnish.