I start by adding the grated cheddar, flour, everything bagel seasoning, salt, and pepper into the food processor and pulsing a few times until everything is evenly mixed. Then I scatter in the cold, cubed butter and pulse again until the mixture looks like coarse, pea-sized crumbs. This step builds the flaky texture I love in the final cracker.
With the processor still running, I stream in the ice water one tablespoon at a time. I stop as soon as the mixture looks like damp couscous and holds together when I press a bit between my fingers. I turn it out onto a lightly floured counter and gently knead it into a smooth ball, being careful not to overwork it.
I wrap the dough ball in plastic wrap and pop it in the fridge for about 30 minutes. This short rest firms the butter back up, which makes the dough much easier to roll out and helps the crackers hold their shape while baking instead of spreading out.
Once chilled, I roll the dough out on a floured surface to about a quarter-inch thickness. Using a pizza cutter, I slice it into roughly 1.5-inch squares, though you can absolutely go smaller for bite-sized crackers. I transfer each square carefully onto a parchment-lined baking sheet, spacing them about an inch apart.
Before baking, I brush the tops lightly with beaten egg and sprinkle on a bit more everything bagel seasoning for extra crunch and flavor. I bake them at 375°F for 18 to 20 minutes, rotating the tray halfway through, until the edges turn a light golden brown.
I always let the crackers cool fully on the tray before touching them, since they firm up and crisp even more as they sit. Pulling them off too early can leave the centers a little soft, so patience really does pay off here.