Stir together first 5 ingredients in a large bowl until blended. Divide cheese mixture into 2 equal portions; shape each portion into an 8-inch log.
Combine walnuts and parsley. Roll cheese logs evenly in walnut mixture; cover and chill 8 hours.
NOTE: For testing purposes only, we used Cracker Barrel Extra-Sharp Cheddar. To make ahead, wrap each log in heavy-duty plastic wrap, and freeze. Thaw in refrigerator overnight.
Port Wine Cheese Logs: Substitute 1 (8-ounce) wedge or block Cheddar cheese with port wine for Monterey Jack cheese with peppers. Proceed with recipe as directed. Port wine Cheddar cheese can be found in the deli section of your grocery store.