Pulse the flour, butter, cheese, salt, and pepper together using a food processor until the mixture resembles coarse meal.
Pulse in 3 to 4 tablespoons of water, one tablespoon at a time, and only enough so that the dough forms a ball and rides the blade.
Remove, wrap in plastic, and chill for 20 minutes or up to 24 hours.
Preheat your oven to 350 F.
Line 2 baking pans with parchment paper or silicone baking mats and set aside.
Roll the dough out to 1/8-inch thickness. (If you roll it thicker, it will still work, but the crackers won't be quite as crunchy. This dough rolled out so easily; you'll wish that you always worked with cheddar!)
Cut out as many crackers as possible.
Place them 1 inch apart on the prepared baking pans.
Bake until golden and crisp, 15 to 20 minutes.
For an Easter variation, use a bunny-shaped cookie cutter to cut out bunnies instead of goldfish.