Cheese Dragons are not actually alive. They are enchanted items of food that act almost identically to dragons. They have no need to eat, but they must “live” in humid environments or they will dry out and harden.

Little Muenster was, sorry to say, the direct result of a complete accident. Two great and powerful wizards were dining together, and arguing good naturedly. When a comment about one wizard's wife's stew tasting like dragon dung, it was war. Food, potions, and magic, went flying everywhere. A jiggling yellow mass rose out of the dust and debris to reveal an animated dragon made entirely of cheese. Delighted with their inadvertent creation, the wizards named the creature, Little Muenster. Quickly, however, they found out that he molded when he got wet, and dried out in the sun, so the wizards gave Muenster to a dragon keeper to look after. The dragon keepers dragons tried to eat Muenster, so he fled. They told him it was harmless nibbling, but he wasn't persuaded.  Muenster now roams through villages looking for where he belongs. The chunk of butter he formed into a lumpy semblance of himself has yet to talk back to him, and all he wants is a friend.