In a large bowl, mix cream cheese, cheddar cheese, chiles, softened onion flakes, garlic powder and cayenne pepper. Form into two 8-inch logs, wrap and refrigerate for about 15 minutes.
Place nuts on parchment or waxed paper and roll each log in the nuts. Wrap in plastic and refrigerate for at least 1 hour. Serve with crackers and sliced fruit and veggies.