Preheat oven to 450℉ and set your dutch oven with the lid sealed in the oven while it preheats. The longer it can preheat while your bread rises the better steam and better the loaf!
Combine 3 cups flour, 2¼ teaspoons yeast, 1 tsp salt, 1 tsp sugar in a large mixing bowl.. Stir in 1½ cups warm water until a shaggy dough forms. Add sharp cheddar cheese (reserving a small handful for the topping) and chives, "punching" it into the dough with a large mixing spoon until combined and a dough ball is formed.
Cover with plastic wrap and let stand at room temperature for 1 hour to rise.
After the dough has risen for an hour, transfer it from the bowl to a floured surface. Use a dough scraper to gently fold dough over about 10 times & shape gently into a ball, be mindful not to crush many air bubbles that may have formed.
Place in a parchment paper-lined mixing bowl and cover with plastic cling wrap. Let stand on counter top for 30 more minutes.
Carefully remove the Dutch oven from the now heated oven and remove the lid (very carefully – it will be HOT!). Lift the parchment paper with the dough and transfer gently into the hot pot. Add an ice cube beneath the paper and cover with lid and bake for 30 minutes.
After 30 minutes, remove lid and if needed, return, uncovered, to oven and bake additional 5 minutes until golden browned. Let it cool at least 15 minutes before slicing.