In a saucepan over medium heat, combine the cream cheese and sour cream. Stir until smooth.

Add the shredded cheddar cheese, garlic powder, onion powder, and hot sauce (if using). Stir continuously until the cheese is melted and the mixture is creamy.

Remove from heat and transfer to a serving bowl. Garnish with chopped green onions.

Serve warm with tortilla chips, crackers, or fresh vegetables.