1 carrot, at least 6 inches long and 1 inch in diameter
18 small pitted ripe olives
18 frilled toothpicks
Carrot curl, if desired
Rosemary sprig, if desired
Red bell pepper pieces, if desired
Crackers, if desired
Line 1-quart bowl with plastic wrap.
In food processor, place Cheddar cheese, blue cheese, 1 package softened cream cheese, the bacon bits, onions and pepper sauce.
Cover and process, using quick on-and-off motions, until thoroughly mixed.
Press cheese mixture into bowl.
Cover and refrigerate for at least 4 hours but no longer than 48 hours.
Invert cheese mixture onto upside-down glass plate or pie plate, forming igloo shape.
Remove about 2 tablespoons cheese mixture from one side to make 2 x 2 1/2-inch arched doorway.
Cut two 3/8-inch slices from end of block of firm cream cheese; reserve.
Beat remaining cream cheese and the milk with electric mixer on medium speed until blended and smooth.
Frost glass plate and igloo with cream cheese mixture; smooth with spatula.
Draw lines across igloo, using toothpick, to look like ice blocks.
Cut each reserved cream cheese slice into 4 rectangles.
Use 6 to 8 rectangles to form door canopy.
Cover loosely and refrigerate until ready to serve.
To make penguins, cut a slit from top to bottom on each jumbo olive on one side only.
Insert about 1 teaspoon cream cheese into olive to fill cavity.
Cut carrot into 1/4-inch slices; cut small notch out of each carrot slice to form feet.
Press cutout notch piece into center of small olive to form beak (if necessary, pierce olive with small paring knife or toothpick to make a hole).
Using a frilled toothpick, stack head (small olive), body (jumbo olive) and feet (carrot slice), adjusting so that beak, cream cheese breast and notch in carrot slice line up. (Penguins will stand better if olives are stacked with larger holes facing downward.)
To serve, cut flag shape from carrot curl and secure on toothpick; insert into top of igloo.
Garnish igloo with rosemary, bell pepper and cream cheese penguins.