 How to Melt Cheddar Cheese. Melted cheddar has a delicious flavor, but it can be slightly finicky, sometimes it will end up being a consistency you didn't want, or it separates or even burns. You can avoid these outcomes by shredding the cheddar first, then allowing it to come to room temperature before applying the lowest heat possible. By following these three techniques, you can successfully melt cheddar in the microwave, on the stove, or even steam it using a steamer basket. Melting cheddar in the microwave. Start with mild or sharp cheddar. Cheddar cheese can be labeled mild, sharp, or extra sharp. The level of sharp indicates how long the cheese has been aged. The amount of aging increases as you go from mild to extra sharp. As the cheese ages, the texture of the cheese changes. Mild and sharp cheddar cheese have a smoother, creamier texture than extra sharp cheddar and will be easier to melt. It will require more heat to melt extra sharp cheddar than to melt less aged cheddar cheese. Mild and sharp cheddar cheese have a higher moisture content than extra sharp cheddar. Shred the cheese. It is best to shred the cheese while it is still cold. If you shred cheese when it is too warm, you will end up with mush. If you do not want to shred the cheese yourself, you can buy cheese that has already been shredded. However, the end result will be creamier and taste better if you shred it yourself. 3. If you're having trouble shredding the cheddar, put it in the freezer for 10 to 30 minutes to harden it. Bring the cheese to room temperature. Once grated, allow the shredded cheddar to remain out on the counter until it becomes room temperature. Doing this will lessen the length of time you'll have to expose the cheddar to heat before it melts. Over exposure to heat will cause melted cheddar to become unpleasantly rubbery or greasy, so the less heat you have to use, the better. Place the cheese in a microwave safe bowl. Pile the shredded cheddar into a bowl that can easily hold all of it, with room to spare. Do not place the cheese on a plate.When it begins to melt, it will run off the plate and you'll have a melted mess to clean out of your microwave. Set the microwave on low heat for 15 seconds. Place the bowl of shredded cheese into the microwave. Close the microwave door. Use the lowest heat setting that your microwave has. Cheese prefers to be melted at the lowest heat possible. Heating cheese at high temperatures sucks the moisture and fat out of the cheese. This will result in clumpy and or greasy melted cheese. 6. Continue with 15 to 30 second intervals until the cheese is melted. After the first 15 seconds, pull out the bowl and stir the cheese. Place it back in and set it for another 15 seconds. Continue in this manner until the cheese has reached the desired melted consistency. The cheese should still be somewhat stringy once melted. Overcooked cheese will be hard and crispy.