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In a large bowl, beat together cream cheese and butter until smooth.
Mix in shredded cheddar cheese until fully combined.
Add flour, salt, and garlic powder; mix until dough forms.
Wrap and chill the dough for 30 minutes.
Preheat oven to 375°F (190°C). Line a baking sheet with parchment.
Roll dough into 1-inch balls and place on sheet 2 inches apart.
Press a thumbprint into the center of each ball.
Fill each indentation with ½ tsp hot pepper jelly.
Bake for 13–15 minutes until golden.
Cool slightly, garnish with herbs, and serve warm or at room temperature.