Remain still. Tree lumps are a perfectly normal part of forests and should not be taken to contain stolen cheese.
You remain hidden. The two humans move under your tree and stop. They start smoking and loudly talk about ways to cook kobolds.
After far too long, they comment about how tired they are and that the penalty for stealing is cutting off both hands and then they finally leave.
You spend a few more minutes shivering in fear. They're probably gone now and your arms are tired of holding the cheese. You take a quick bite to remind yourself of just how good it is. It really is the best.
You should find somewhere to sleep soon. This tree looks safe, and you kinda don't feel like leaving it for a few hours, although you'd be sore tomorrow, and you don't think holding a big wheel of cheese while sleeping would work. You've slept in a tree before, and shouldn't fall yourself.
Now would also be a good time to decide where you're going. You were planning to go to a nearby town, which the caravan was coming from, but now you remember how scary humans are and maybe that's not such a good idea. After another nibble of extra-good cheese, you're second-guessing yourself. If they have more cheese in the town, it would be worth it. You should probably think up some sort of plan, though.
You're pretty near the boarder of [Suggest]. It might be safer to just get away from these hand-chopping kobold-eating human-dominated lands for a long while.
Morale is now terrible.