You can also shape the cheese mixture into a Yule log.
Beat cream cheese and next 6 ingredients at medium speed with a heavy-duty electric stand mixer 2 to 3 minutes or until well combined.
Stir together Cheddar cheese, horseradish, and cream cheese mixture until combined. Chill 5 minutes. Shape into a ball, and roll in walnuts to coat. Serve with water crackers.