In a pan add a small amount of water then add half of the red capsicum, add a pinch of salt and cook on medium heat until tender but not overcooked. Cook for about 5 minutes. Remove from the pan and drain excess liquid, let it cool and chop finely, set it aside.

In a mixing bowl combine together mild cheddar cheese, softened butter, softened cream cheese (or condensed milk), chopped bell pepper and evaporated milk and sugar (omit sugar if using condensed milk). Mix on low speed until well combined. You can use it now as a spread or you can do the 2nd method.

Second method is if you want it more spreadable, transfer the mixture in a pan, add 1/4 cup evaporated milk then lightly melt the mixture for a minuted while stirring continuously on a low heat. Remove from the pan and let it cool down.

Transfer in a container that you can cover, chill before serving.