In a medium saucepan set over medium heat, melt the unsalted butter until foaming but not browning (about 1 minute). Sprinkle in the all-purpose flour and whisk continuously for 1 to 1½ minutes to cook the flour — you want a pale, slightly nutty aroma but no browning.

Add milk

Slowly pour in the whole milk while whisking constantly to avoid lumps. Continue to cook and whisk until the mixture thickens and just comes to a gentle simmer, about 3–4 minutes. The sauce should coat the back of a spoon.

Incorporate cream cheese and seasonings

Reduce heat to low. Add the softened cream cheese in small pieces and whisk until fully melted and smooth. Stir in Dijon mustard, Worcestershire sauce, garlic powder, smoked paprika, kosher salt, and black pepper until well combined.

Add cheddar

Gradually add the grated sharp cheddar, about ½ cup at a time, stirring after each addition until fully melted and smooth before adding more. Keep the heat low to prevent cheese from separating. Taste and adjust seasoning as needed.

Finish and garnish

When the dip is smooth and steaming (not boiling), remove from heat. If the dip is thicker than desired, thin with up to 2 tablespoons of milk. Transfer to a warmed serving bowl and sprinkle with sliced chives, plus a light dusting of smoked paprika if desired. Keep warm until serving.

Pretzels & Accompaniments

Warm soft pretzels

If using soft pretzel twists or bites, reheat according to package instructions or warm in a 350°F (175°C) oven for 5–8 minutes until just warmed through and slightly crisp on the exterior. For best results, place on a baking sheet lined with parchment and cover loosely with foil for the first few minutes to retain softness, then uncover to crisp.

Arrange accompaniments

Place warmed soft pretzels and hard pretzels or sticks on a serving platter. Add cornichons or sliced pickles, and apple slices or grapes in small bowls or sections on the platter to provide a bright, acidic contrast to the rich cheese.

Serve

Bring the warm cheese dip to the table with the pretzel platter. Encourage guests to dip soft pretzels and pretzel sticks into the cheese. Reheat the dip gently over low heat or in short bursts in the microwave (15–20 seconds) if it begins to thicken while serving.