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Dr. Honeydew takes an ordinary piece of cheese (albeit highly aged and processed from cows with a greater than average sense of humor) and, with a jolt of electricity, awakens its higher synaptic processes. But while the Humorous Cheese starts off life by immediately showcasing his cheesy humor, he soon grows violent, attacking Honeydew and Beaker when they don't show a taste for audience participation.
Honeydew is ultimately able to cage his creation (although not without caging Beaker along with him), but the Cheese breaks free and roams backstage (pursued by enthusiastic rats, naturally). He even suggests to Kermit that he fill Fozzie's vacancy when the bear is beat senseless by Miss Piggy, but is last seen conceding defeat and leaving the Muppet Theater when Fozzie gets his groove back.