Drain the jarred pimento peppers thoroughly and finely chop them—this removes excess liquid that would make the dip watery. In a food processor or blender, combine half of the shredded cheddar cheese (4 oz), the softened cream cheese, mayonnaise, chopped pimentos, and kosher salt. Blend until completely smooth and creamy, about 1-2 minutes. This creates an emulsified base that will hold the remaining cheese pieces in suspension rather than creating a grainy texture.

Transfer the smooth mixture from Step 1 to a bowl. Fold in the remaining 4 oz of shredded cheddar cheese using a spatula or wooden spoon—folding rather than stirring vigorously keeps the cheese shreds intact and creates a better texture. Sprinkle the smoked paprika and cayenne pepper over the top and fold gently until the spices are evenly distributed throughout. I like to taste at this point and adjust the seasoning if needed; the heat from the cayenne should be subtle, not overwhelming.

Transfer the dip to a serving bowl and refrigerate for at least 1 hour before serving. This chilling time allows the flavors to meld and the cream cheese to set slightly, giving the dip a better consistency for scooping. The dip can be served cold or brought to room temperature for about 15 minutes before serving—I find it has the best texture when it's slightly cool but not ice cold, allowing the cheesy, pimento flavor to shine through.