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.

During a fight between two young wizards, Cheesy Queso was created. One of the wizards' bolt of magic strayed off course and hit the headmaster's sandwich. Almost immediately the egg hatched and little baby Cheesy Queso scurried off to the local shop's cellar where it was moist and warm. Intrigued by this miracle, the headmaster forgave the apprentices for fighting and adopted the dragon. The headmaster brought the hatchling home where his daughter promptly named it "Cheesy Queso". Cheesy quickly became friends with the daughter, scrambling to her arms. To this day the daughter, the headmaster and the dragon all live happily together.