I keep it simple. I don't use any grated cheese, I just don't think it's necessary. I mix whatever rub I'm using in with the cream cheese. Since ABT's are usually smoked in conjunction with some other longer cooking meat, I usually have a spare tablespoon or so of rub. I also discovered last time out that using a half pepper for each finished piece yielded better results. Also gives you twice as many pieces. Just a dollop of cream cheese, stick in a lil' smokie and wrap in bacon. One thing you want to be sure about is CLEAN THE PEPPERS WELL! Get all the membrane out, especially on the ends. Your family and friends will thank you if they don't get a surprise "pepper bomb" whilst happily munching away. Oh, and gloves and eye protection is, for me anyway, mandatory during the cleaning process. That pepper oil will stay on your hands and if you touch your eyes or touch any sensitive parts while in the bathroom, you'll regret it. They like to squirt while you're scraping the membrane too, and one shot in the eye was enough to convince me.
As for cooking times, 2 hours seems to be the magic number for me. As long as the bacon is cooked to your liking, you'll be fine.
Make sure you let us see the results!!