Pre-heat skillet over medium heat.
Butter one side of each piece of bread.
When pan is hot, sprinkle half of the shredded cheddar cheese directly onto the pan, about the surface area of a slice of bread. Top immediately with one slice of bread, buttered side down.
Top with the American cheese slice and second piece of bread, buttered side up. Sprinkle remaining shredded cheddar cheese onto top of the buttered bread.
Cook until cheese on bottom is seared a nice golden brown, then flip to cook the other side.
Cook until cheese on second side is seared a nice golden brown. Cut sandwich in half and serve.