Heat milk and cheddar cheese slices in a saucepan over medium heat.

Turn off the heat and whisk until the cheese is fully melted.

Add butter to the mixture and stir until combined. Let it cool to lukewarm temperature.

In a bowl, whisk egg yolks and sugar until pale and creamy.

Gradually add the cheese mixture to the egg yolk mixture, stirring continuously.

Sift in cake flour and add vanilla extract. Mix until just combined.

In a separate bowl, whip egg whites while adding sugar in two batches until soft peaks form.

Fold the meringue into the batter in three additions, gently mixing each time.

Pour the batter into a 18cm round pan lined with parchment paper. Tap the pan to remove air bubbles.

Place the pan in a larger tray filled with warm water for a water bath.

Bake at 160°C for 50–60 minutes. Let the cake cool in the oven with the door slightly open for 30 minutes.

Remove the cake from the oven and let it cool to room temperature.

Wrap the cake in plastic wrap and refrigerate until chilled before serving.