Softening the cashews first helps them blend. If you have a high-powered blender you may be able to skip this step, but if not, this step is important to get a smooth cheese. You can either boil or soak the cashews.
To boil the cashews (the fast method): add the cashews to a small pot, cover with water, and boil for about 10 minutes until the cashews are very tender.
To soak the cashews: add the cashews to a bowl, and cover with water. Let soak for 4 hours or overnight until tender. Drain and rinse cashews before using.
Add the cashews along with the 1 cup of water and all the remaining ingredients to a blender. Blend until completely smooth. It will be very watery.
Pour into a small saucepan and put over medium-high heat. Continually stir. The cheese will start forming clumps, keep stirring and it will continue clumping until the mixture turns from watery to a thicker melty cheese sauce. This takes about 5 minutes.
Serve hot or allow to cool and store in an air-tight container in the fridge for 2 - 3 days. The cheese will get thicker as it cools but will stay in a melty state.
