For milder flavor, reduce the cayenne pepper sauce to 1/2 cup.
Preheat the oven to 350° F. Spray a 1 1/2-quart casserole dish with nonstick cooking spray.
Combine cream cheese, pepper sauce, and ranch dressing in a small saucepan. Heat over low heat, stirring frequently, until melted.
Stir in chicken and about half of the cheddar cheese. Stir until combined.
Spoon into prepared dish. Sprinkle with remaining cheese.
Bake 15 minutes or until hot and cheese is melted.
Serve warm with tortilla chips, crackers, or vegetables.