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CUT block of cream cheese diagonally in half. Arrange both halves, with points together, on serving plate to resemble Christmas-tree shape.
CUT a 2-inch piece from the string cheese. Place at bottom of tree for the trunk. Wrap up remaining cheese; refrigerate until ready to use for snacking or other use.
SPOON pesto over cream cheese; sprinkle with peppers. Serve as a spread with the crackers.