In a medium saucepan over medium heat, cook and stir the dried chipped beef in butter until evenly browned.Advertisement
In a medium bowl, whip the cream cheese, horseradish, green bell pepper, red bell pepper and pepper until well blended. Mix in 2/3 of the beef. Roll into a ball.
Roll the ball in the remaining beef and the Cheddar cheese. Wrap in plastic and chill in the refrigerator at least 1 hour before serving.