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Pour 1 cup of water into your Instant Pot. Place the potatoes in a steamer basket and lower it into the pot. Secure the lid, move the valve to the sealing position, and select Manual or Pressure Cook on High Pressure for 8 minutes. Perform a quick release when cooking is complete.
Using oven mitts, carefully remove the steamer basket and drain the liner pot. Return the liner pot to the Instant Pot and add the potatoes back in. Use a potato masher to mash the potatoes directly in the pot until most of the large chunks are gone. Cancel the current setting, then select Sauté and adjust to the Normal or Medium setting.
Add the butter and mix it into the potatoes. Pour in the heavy cream and stir until everything is well combined. Gradually add the shredded cheese in batches, stirring with a silicone spoon. Keep stirring constantly until the potatoes take on a stretchy, taffy-like consistency and become aligot.
As you mix, taste and season with optional salt and pepper. Continue stirring until the mixture is hot and super stretchy, about 5 minutes. When done, hit Cancel and then select Keep Warm. Leave the aligot in the pot while serving, as the heat is essential to maintain the cheesy stretch.
The aligot will firm up if left at room temperature for too long, so once plated, enjoy it sooner rather than later for the best results.