I usually squeeze the chilies between a couple of layers of paper towels to get rid of the excess moisture. If you don't want to use green chilies, add about half tsp. of ground red pepper. Pour in all ingredients (EXCEPT cheese and chilies) in the order listed (or if your machine takes wet ingredients first, reverse the order) Select white bread and push "Start". After the first knead, at the beeps, add the chilies and the cheddar cheese. When the bread is finished baking brush on some margarine or butter to the crust.