The ‘Cilla’ and ‘The C Word’ actress was honoured for her varied career, which has seen her awarded a BAFTA and two Olivier Awards, thanks to her TV and stage roles.
To make Sheridan's day even better, Prince Wills revealed he was a big fan of the hit show ‘Gavin And Stacey’ - in which she played Rudi Smith - at the presentation ceremony.
Speaking of how she would “absolutely treasure” the award, Sheridan said: "I did say I don't feel as worthy as so many of the recipients, but thank you so much, it's a huge honour.
"He said he'd seen some of my work, which is amazing, and was a fan of 'Gavin And Stacey'.
"And I congratulated him on his wonderful children and he shook my hand and I was shaking - it's all a bit of a blur. It was a huge honour and I will absolutely treasure this, I can't quite believe it.
"I just do my acting, it's what I love doing, I never ever expected to get an OBE so this is absolutely indescribable," she added.
The 33-year-old actress first entered the limelight with minor parts in sitcoms ‘The Royle Family’ and ‘Gavin And Stacey’, and the bigger role of Janet in the long-running sitcom ‘Two Pints Of Lager And A Packet Of Crisps’.
However, it was in 2011 that Sheridan really hit the bigtime, when her performance in the West End musical ‘Legally Blonde’ earned her an Olivier Award.
More recently, she won plaudits and a Bafta for her performance as the eponymous ‘Mrs Biggs’ and before playing Cilla Black in an ITV biopic.
Her most recent role saw her play cancer blogger Lisa Lynch in BBC drama ‘The C Word’, and Sheridan even shaved her head for the role.
Sheridan said she believed the characters she’d played had helped her earn the OBE.
“I love being able to try different roles and I think it's good to challenge yourself. To me I feel so lucky, I keep pinching myself every role I get, I've got that working mentality where every job's a bonus,” she said.
"I've just plodded along, I've done a lot of comedy, then some dramas have come my way and some musical theatre and some straight plays.
"I just feel very lucky that I've been given those opportunities and if I hadn't been given those opportunities I certainly wouldn't be collecting an OBE today."