I just unwrapped my first cloth bound cheddar and it smelled like urine. Ammonia. What do I do? :P
Cut it in four. Leave it outside for 24-48 hours. Taste and see, and cut off the rind.
The urine/ammonia is the natural result of the mold. I've not made a cloth-bound cheddar yet, but as I understand it, most of the mold should have stayed in/on the wrapping, not getting much down onto the cheese itself. You may need to use more layers and/or more lard in your wrapping - ?
I agree with airing it out for a day or two, and/or scraping off the mold as needed. I think I'd wait to cut it until I had done the latter, though.
Turned out fine. Thanks