BEAT cream cheese and Cheddar in small bowl with mixer until blended.
ADD all remaining ingredients except nuts; mix well. Refrigerate several hours.
SHAPE into ball; roll in nuts. Serve with RITZ Crackers.
kraft kitchens tipsVARIATION Prepare by reducing the amount of Cheddar cheese to 1/2 cup and using PHILADELPHIA 1/3 Less Fat than Cream Cheese and KRAFT 2% Milk Shredded Sharp Cheddar Cheese. In addition, coat the cheese ball with chopped fresh parsley instead of chopped nuts.SUBSTITUTESubstitute pimentos for the red bell peppers and/or toasted chopped PLANTERS Slivered Almonds or finely chopped fresh parsley for the nuts.VARIATION Mix cream cheese mixture as directed; shape into log or 24 small balls, each about 1 inch in diameter. Roll in nuts until evenly coated. Serve as directed.