Place the block of cream cheese in bowl, microwave 1-2 minutes (stirring half way through). The cheese should be soft enough to easily dip and coat the grapes.
Place the cashews in a food processor. Pulse 5-6 times or until only small bits remain.
Line up three bowls on the counter: one with the grapes, one with the warmed cream cheese, and one with the crushed cashews. Poke a grape with the toothpick, dip it in the cream cheese and swirl around to coat. Next dip the cream cheese coated grape in the crushed cashews until completely covered then place on a serving tray. Continue until all the grapes are done!