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In a small skillet over medium heat, toast walnuts, stirring occasionally, until fragrant, about 5 minutes. Let cool, then finely chop.
In a medium bowl, stir cream cheese, cheddar, and butter. Add Parmesan, honey, salt, ¼ cup cranberries, ½ tsp. pepper, and ¼ cup toasted walnuts and mix with a spatula until well combined.
Transfer cheese mixture to a large piece of plastic wrap; form into an 8" log. Tightly wrap and refrigerate until firm, about 1 hour.
On a plate, combine thyme and remaining ¼ cup cranberries, ¼ cup toasted walnuts, and ¼ tsp. pepper. Unwrap log and roll in cranberry mixture, gently pressing to adhere and making sure ends of log are coated too.
Transfer cheese log to a platter. Let sit at room temperature at least 30 minutes to soften, or loosely cover with plastic wrap and refrigerate up to 1 week. Serve with crackers alongside.