Combine the flour, butter, cheddar cheese, cayenne pepper, and paprika in your food process and process until you have small crumbs.

Add the water and continue to process until a ball of dough is formed.

Form a circle of dough with your hands and wrap it in plastic wrap.

Refrigerate dough for 45 minutes, then place in the freezer for 15 minutes. (I believe you could also just refrigerate overnight and bake the crackers the next day.) You want the dough to be very cold.

Place the dough on a lightly floured surface and roll out to 1/8-inch thick. (I placed the dough on a floured surface and then covered it with the plastic wrap. Then I rolled the dough out with a rolling pin. This prevented the dough from sticking and I didn't have to keep adding flour.)

Use a pizza cutter to cut dough into 1/2-inch squares. If desired, gently poke each square in the center with a round skewer to create the traditional Cheez-It look.

Transfer squares to an ungreased glass pan and bake at 350 for 15- 20 minutes. (My squares were thicker than 1/8-inch and took 23 minutes to bake.)

When the crackers are golden and crispy, removed them from the oven.

Allow the crackers to cool before eating them.

Store any leftovers in an airtight container.