In a large mixing bowl, combine the all-purpose flour, instant yeast, and salt. Stir to mix evenly.
Add the warm water to the dry ingredients and stir with a wooden spoon or spatula until a shaggy dough forms. The dough will be sticky and rough.
Fold in the shredded sharp cheddar cheese until evenly distributed throughout the dough.
Cover the bowl tightly with plastic wrap or a clean kitchen towel and let the dough rest at room temperature for 4 to 5 hours, or until it has doubled in size and is bubbly on the surface.
After the dough has risen, generously flour a clean work surface and your hands. Turn the dough out onto the floured surface and fold it over itself a few times to shape it into a rough ball. Do not knead.
Place the dough seam side down on a large piece of parchment paper. Cover it loosely with a kitchen towel and let it rest for 30 minutes.
About 30 minutes before baking, place a Dutch oven (or heavy oven-safe pot with lid) into the oven and preheat to 450°F (230°C).
Carefully remove the hot Dutch oven from the oven. Using the parchment paper, lift the dough and place it into the Dutch oven. Cover with the lid.
Bake the bread covered for 30 minutes. Then remove the lid and bake for an additional 15 minutes, or until the crust is deep golden brown and the bread sounds hollow when tapped.
Remove the bread from the oven and transfer it to a wire rack. Let it cool completely before slicing.