Shred both sharp and mild cheddar cheese using a box grater. Freshly shredded cheese melts and blends better than pre-packaged varieties. Drain the pimentos and dice them finely if needed.
In a large mixing bowl, combine mayonnaise and softened cream cheese. Stir until smooth and well blended. Add garlic powder, onion powder, and cayenne pepper if using. You can also add 1 teaspoon of Worcestershire sauce if you want.
Gradually fold in the shredded cheese, ensuring every piece gets coated with the creamy mixture. Add the diced pimentos and stir gently. Taste and adjust seasoning with salt and black pepper as needed.
Cover the bowl and refrigerate the pimento cheese for at least one hour. This step allows the flavors to meld together, creating a richer taste. However, if time is short, serving immediately still delivers delicious results.
Take the pimento cheese out of the refrigerator and give it a quick stir before serving. Pair it with crackers, fresh vegetables, or toasted bread.