Spread 1/3 cup of the picante sauce in the bottom of a 13 inch x 9 inch baking dish. Set aside.
Lay the chicken breasts on a cutting board. Use the flat side of a meat mallet to pound the chicken breasts to a uniform thickness.
Spread the chicken evenly with the cream cheese. Lay the chicken, cream cheese up, in a single layer in the prepared baking dish. Spoon the remaining 1/2 cup picante sauce evenly over the breasts. Cover the dish with aluminum foil.
Bake for 15 minutes. Remove the aluminum foil.
Sprinkle the Cheddar cheese evenly over the chicken breasts. Bake uncovered, for another 15 minutes, or until no longer pink. Serve immediately.