In a medium pot over medium heat, bring the 2 cans of beer to a low boil and boil the brats for 10 minutes and then set aside. If there is not enough room in the pot for all of the brats, do them in batches.

To make the cheese sauce, reduce the heat and let the beer come to a simmer. Whisk in the cream cheese and then the cheddar cheese. At this point the sauce will be thin. Add the worchestershire sauce and the horseradish. Continue whisking occasionally and let the sauce reduce to the desired consistency.

In a medium sauté pan over medium heat, melt the butter and add the onion, salt, pepper, bay leaf, and caraway seeds. Cook until the onions are translucent and then add the sauerkraut. Stir to combine and let the mixture slowly caramelize.

Throw your brats on the grill and let them brown.