Preheat your oven to 425°F and line a baking sheet with parchment paper. While the oven heats, halve the mini sweet peppers lengthwise and carefully remove all seeds and membranes using a small spoon or knife. Arrange the pepper halves cut-side up on the prepared baking sheet, making sure they sit flat and stable.
In a medium bowl, combine the softened cream cheese, freshly shredded cheddar cheese, fresh chives, salt, pepper, garlic powder, and smoked paprika. Mix thoroughly until the filling is smooth and evenly combined—I like to use a fork to break down the cream cheese completely, which ensures the filling spreads easily into the peppers without any lumps. The smoked paprika adds a subtle depth that really complements the cheese.
Spoon the cream cheese filling generously into each pepper half, filling them to about three-quarters full. I find it's easier to use a small spoon or piping bag to get the filling distributed evenly, which ensures consistent texture and flavor in every bite. Don't overstuff—leaving a little room allows the cheese to bubble slightly as it bakes without spilling over.
Place the filled pepper halves in the preheated 425°F oven and roast for 15 minutes, until the filling is golden brown and bubbly around the edges and the peppers are just tender. The peppers should still have a slight firmness to them—you're not trying to completely soften them, just warm them through while the cheese gets beautifully caramelized on top.
Remove the peppers from the oven and let them rest for 1-2 minutes. Transfer to a serving plate and garnish with a few fresh chives for a pop of color and brightness. Serve warm—they're best enjoyed right out of the oven when the cheese is still creamy and the peppers have that perfect tender-crisp texture.