Gather all your ingredients and tools so that you have everything close at hand on the counter or table.
Using a box grater, shred the cheddar cheese with a medium shred. Finely shred the muenster cheese.
In a large mixing bowl, combine the softened cream cheese, mayonnaise, Dijon mustard, granulated sugar, Worcestershire sauce, dried minced onion, hot sauce, and freshly ground black pepper. Mix together until creamy.
Add in the grated cheese and chopped pimentos. Mix until combined.
Cover and place in a pretty serving bowl. Refrigerate for 2-4 hours before serving to let the ingredients blend. Serves 10-12.