Prepare Homemade Cranberry Sauce by combining fresh cranberries, sugar, orange juice, lemon juice, and water in a medium saucepan over medium-low heat. Stir until cranberries burst and mixture thickens, about 15-20 minutes.

Preheat the oven to 375°F (190°C) or 350°F (175°C) for convection baking.

Combine softened cream cheese and 1¾ cups of shredded extra-sharp cheddar cheese in a large mixing bowl until smooth. Mix in nutmeg if desired.

Gently fold in cranberry sauce and half of the fresh cranberries into the cheese mixture.

Transfer the mixture into a greased baking dish. Top with remaining shredded cheddar cheese and fresh cranberries.

Bake for 18-23 minutes or 15 minutes for convection until bubbly and the edges are golden brown.

Let the dip cool slightly before serving warm with crostini, crackers, or pita chips.