Bring a large pot of water to a boil. Add chicken, cover, and reduce heat to medium. Simmer until chicken is no longer pink in the center and the juices run clear, about 10 minutes. An instant-read thermometer inserted into the center should read at least 165 degrees F (74 degrees C). Remove chicken and shred when cool enough to handle.
Combine ranch dressing and sour cream in a saucepan over low heat. Stir and heat until warm, about 5 minutes. Stir in hot sauce and 1/2 cup Cheddar cheese, followed by shredded chicken.
Transfer to an 8-inch round baking dish and top with remaining Cheddar cheese. Place in the refrigerator to cool for 1 to 2 hours.
Preheat the oven to 350 degrees F (175 degrees C).
Remove dip from the refrigerator and bake in the preheated oven until cheese is bubbly, 20 to 30 minutes. Let cool slightly before serving.
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