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Place the cashews in a bowl and cover with boiling water. Soak for 30 minutes, then drain and rinse well.
Transfer the drained cashews to a blender. Add the 3/4 cup water, nutritional yeast, drained green chiles, lemon juice, cumin, smoked paprika, garlic powder, onion powder, salt, and cayenne, if using. Blend on high for 60–90 seconds until completely smooth, scraping down the sides once halfway through.
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