Mix together the cream cheese, Monterey Jack cheese and hot pepper sauce until evenly blended. Place into a piping bag and fill each olive with the cheese mixture. Place the olives onto a baking tray and freeze 30 minutes.
Beat the eggs with the water in a small bowl; set aside. Combine the breadcrumbs, flour and black pepper in a mixing bowl. Dip the olives into the egg mixture, then roll in the breadcrumbs. Replace the breaded olives onto the baking tray, and freeze 30 minutes more.
Heat oil in a deep fat fryer or large saucepan to 180 degrees C.
Bread the olives a second time by dipping into the remaining egg mixture, then rolling in the breadcrumbs. Fry the olives in batches in the preheated oil until golden brown on the outside and hot on the inside, about 4 minutes.
If Monterey Jack is unavailable, use Cheddar instead.