1 1/2 pounds good sharp cheddar cheese, grated (please grate your own cheese)
In the bowl of an electric mixer, place the cheddar cheese, cream cheese, mayonnaise, onion, and cayenne pepper and beat with the flat beater at medium speed for 1 or 2 minutes. This is to mix the ingredients not to make them smooth.
Add the pimentos and keep mixing until they are shredded and the mixture is somewhat smooth. Be careful not to overmix and avoid its becoming homogenized.
Pack the cheese in crocks, cover with plastic wrap, and refrigerate overnight. Forty-five minutes before serving, remove from refrigerator. Pimento cheese will keep in the refrigerator for 4 or 5 days if tightly covered.