In a small saucepan, combine sugar, vinegar, salt, dill seeds, mustard seeds and garlic.
Bring to a boil.
Cook and stir until sugar dissolves, 2 to 3 minutes.
Stir in chilies.
Cook and stir for 2 to 3 minutes longer.
Turn into a small bowl.
Cover and refrigerate 6 hours or overnight.
Drain, pressing mixture with back of a spoon to remove moisture.
In a medium bowl, stir cream cheese to soften.
Stir in drained chili mixture.