Use softened cream cheese at room temperature for smooth melting. For extra heat, add cayenne pepper or hot sauce. To help cheddar melt better, cover the pot during the final melt step. Drain excess liquid after shredding if needed, but keep some sauce for flavor. Shred chicken finely for better consistency. Variations include dairy-free alternatives, adding blue cheese crumbles, using rotisserie chicken, including vegetables, or adding smoky spices.