Combine the refried beans and water in a medium saucepan over medium heat.
Stir frequently until the beans are warmed and thinned to your desired consistency.
Add the enchilada sauce to the beans, stirring well to integrate fully.
Bring this mix to a low simmer.
Gradually sprinkle the shredded cheddar cheese into the saucepan, stirring constantly.
Allow the cheese to melt completely and blend with the bean mixture.
Optional: Mix in the Greek yogurt for a creamier texture.
Continue to simmer gently for about 2-3 minutes, stirring to ensure even heating.
Serve hot with a sprinkle of extra cheese on top if desired.
Enjoy your homemade creation!