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.

Rogue Cheddar was a gift from Xywin to Dragontown's cheese shop, meant to serve as part mascot, part advertisement.  He proved to be too popular for his own good, though, and after the third time he had to go to Xywin for repairs after being sampled by customers, it was decided he'd be better off elsewhere.  After a brief time serving as living bait for the Pygmy Mousers (which went about as well as could be expected), he finally found a home with a curiosity-collecting wizard.  Throughout it all, Rogue Cheddar has remained cheerful, and has never been seen without a smile on his face.  Since he never speaks, it's impossible to tell whether he's extremely stoic, or just not overly bright.