Pat the thawed peas dry with paper towels to remove excess moisture—this prevents the dressing from becoming watery and diluted. Finely dice the red onion into uniform 1/4-inch pieces for even distribution throughout the salad. Shred the cheddar cheese if not pre-shredded. Cook the bacon in a skillet over medium heat until crisp, about 8-10 minutes, then transfer to a paper towel-lined plate to cool. Once cooled, crumble it into bite-sized pieces.
In a large mixing bowl, whisk together the sour cream, mayonnaise, sugar, cider vinegar, salt, and pepper until smooth and fully combined. The sugar and vinegar create a balanced sweet-tangy flavor, while the sour cream and mayo provide richness without being overly heavy. I like using Daisy sour cream for its clean, neutral flavor that doesn't overpower the delicate peas.
Add the dried peas, diced red onion, shredded cheddar cheese, and crumbled bacon from Step 1 to the dressing base. Gently fold everything together until evenly coated, being careful not to crush the peas. For better flavor depth, I prefer Tillamook sharp cheddar—it provides a more pronounced cheese bite that complements the creamy dressing without being lost in the mix.
Transfer the salad to a serving bowl and refrigerate for at least 1 hour before serving. This resting time allows the flavors to meld together and the dressing to fully coat every ingredient. The salad can be made up to 4 hours ahead, making it perfect for holiday entertaining.