Melt butter in a medium saucepan over medium heat. Stir in garlic, onion, and chicken livers. Reduce heat to low, and sauté until chicken livers are tender and no longer pink, about 10 minutes.
Place chicken liver mixture in a blender; add dry sherry, cream cheese, hot sauce, salt, and pepper. Blend until smooth; transfer to a medium bowl. For best results, cover and chill pâté in the refrigerator for approximately 2 hours before serving.