In a mixing bowl, soften the cream cheese until it's smooth and pliable, about 20 seconds in the microwave.
Add the shredded sharp cheddar, smoked paprika, cayenne pepper, and a pinch of salt to the bowl. Use a spatula to mix everything thoroughly until the mixture is creamy, uniform, and slightly fragrant.
Stir in the chopped fresh herbs and toasted nuts, folding gently to distribute the flavors evenly throughout the mixture.
Taste the mixture and adjust the spices if needed—add more paprika for smokiness or cayenne for heat. Once satisfied, scoop the mixture out and shape it into a tight, smooth ball about 4 inches in diameter, pressing gently with your hands or gloves.
Place the cheese ball on a parchment-lined baking sheet. Cover loosely with plastic wrap and refrigerate for at least 1 hour to firm up and meld the flavors.
While the cheese ball chills, prepare your coating mixture by crushing additional toasted nuts or chopping fresh herbs if desired. This step adds texture and visual appeal.
Once chilled, remove the cheese ball from the fridge. Roll it in the coating mixture, pressing gently to ensure the exterior adheres evenly. Shake off any excess for a clean finish.
Place the coated cheese ball on a serving platter and garnish with a sprinkle of paprika or chopped herbs for extra color. Serve with crackers, sliced baguette, or vegetable sticks.