Preheat your oven to 180°C (350°F). Line a baking sheet with parchment paper and gather your ingredients.
In a large mixing bowl, whisk together the flour, salt, and smoked paprika if using. This creates a flavorful dry base.
Grate the sharp cheddar cheese using a box grater. Chill the cheese slightly if it feels very soft for easier handling.
Add the cold, cubed butter to the dry ingredients. Use your fingertips or a pastry cutter to work the butter into the flour until the mixture resembles coarse crumbs.
Stir in the grated cheese evenly through the mixture.
Gradually add cold water, a tablespoon at a time, mixing gently until the dough begins to come together. Don’t overmix; just until it forms a rough ball.
Turn the dough onto a lightly floured surface and knead gently a few times to bring it into a cohesive ball. Divide into two equal portions for easier rolling.
Roll each piece of dough between two sheets of parchment paper to about 2-3mm thickness, keeping the dough cold to prevent sticking and tearing.
Remove the top parchment and cut the dough into small squares or rectangles using a sharp knife or pizza cutter. For a decorative touch, use a small cookie cutter.
Transfer the cut crackers to the prepared baking sheet, spacing them about 1cm apart. Brush lightly with beaten egg for a shiny, golden finish if desired.
Bake in the preheated oven for 12-15 minutes, or until the crackers are golden around the edges and crispy. Keep an eye on the first batch to prevent over-browning.
Remove from the oven and let the crackers cool on the baking sheet for 5 minutes, then transfer to a wire rack. They will firm up as they cool, becoming delightfully crunchy.