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Step 1
Softening the cashews first helps them blender. If you have a high-powered blender you may be able to skip this step, but if not, this step is important to get a smooth cheese. You can either boil or soak the cashews. To boil the cashews (the fast method): add the cashews to a small pot, cover with water, and boil for about 10 minutes until the cashews are very tender. To soak the cashews: add the cashews to a bowl, and cover with water. Let soak for 4 hours or overnight until tender. Drain and rinse cashews before using.
Step 2
Add the cashews along with the 1 cup of water and all the remaining ingredients to a blender. Blend until completely smooth. It will be very watery.
Step 3
Pour into a small saucepan and put over medium-high heat. Continually stir. The cheese will start forming clumps, keep stiring and it will continue clumping until the mixture turns from watery to a thicker melty cheese sauce. This takes about 5 minutes. Serve hot or allow to cool and store in an air-tight container in the fridge for 2 - 3 days. The cheese will get thicker as it cools but will stay in a melty state.