Cheddies means pornography.
In the online flash game of Shores Acres The Video Game, a replica of our neightborhood, one goal is to go the local convenient store and ask about something called 'cheddies' and in the game it is supposed to be cheese filled hotdogs. Well one night in the real Shore Acres, we decided to ask our local convenient store if they had any cheddies. The Arabs working there thought we were trying to ask for the porn magazine called Cheri's. Since then we've called porn cheddies, cheds for short.
The phrase "making cheds" can mean anything from kissing to sex. cheds cheddie grumpler making cheds