Line a small loaf pan with plastic wrap so the wrap covers the bottom and sides and leaves excess to hang over the edges.
Put the 1/4 ounce (7.09 g) packet unflavored gelatin and 6 tablespoons dry milk powder into a blender or food processor.
Carefully pour 1 cup (250 ml) boiling water over the powders in the blender. Secure the lid, let the mixture sit about 20–30 seconds to allow the gelatin to begin dissolving, then pulse or blend until the powders are fully dissolved and the liquid looks uniform.
Add the 16 ounces (453.59 g) shredded mild cheddar to the blender. Secure the lid and puree in short bursts until the mixture is completely smooth and homogenous, pausing to scrape down the sides with a spatula as needed.
Immediately pour and scrape the cheese mixture into the prepared loaf pan. Use a spatula to smooth the top into an even layer.
Fold the excess plastic wrap over the surface of the cheese, pressing gently to remove any air pockets and ensure the cheese is completely covered.
Refrigerate the pan for at least 12 hours, until the cheese is fully set. Keep the finished cheese tightly wrapped in plastic in the refrigerator for up to 1 month.