1. Pour water into large mixing bowl. Sprinkle yeast and sugar over water; stir to dissolve. Set aside until foamy, about 10 minutes. Add 1 1/2 cups of the Cheddar cheese, chives, butter and salt; mix until combines. Beat in flour, 1/2 cup at a time, until dough is sticky and soft. Cover; let rise in warm place until doubled in size, 1 hour.
Punch down dough with wooden spoon; mix one minute. Place dough on floured work surface; cut in half. Place each half in a greased 9-by-5-inch loaf pan. Smooth top (dough will be sticky). Sprinkle tops with remaining cheddar cheese. Cover with plastic wrap; let rise until doubled in size, 45 minutes.
Heat oven to 375º. Bake until loaves are golden brown on top and sound hollow when tapped, about 30 minutes. Cool in pans on wire rack 30 minutes. Remove from pans to cool completely.
Nutrition information per slice:
155 calories, 26% calories from fat, 2.7 grams saturated fat, 13mg cholesterol, 290mg sodium, 23g carbs, 6g protein, 0.9g fiber.