Preheat the oven to 350°F (175°C). Line a baking sheet with parchment paper or a silicone baking mat.
In a mixing bowl, combine the flour, shredded cheddar cheese, softened butter, salt, cayenne pepper, garlic powder, and onion powder. Mix until crumbly with a spatula or wooden spoon.
Gradually add the cold water, one tablespoon at a time, mixing until the dough comes together. You want a smooth, workable dough. If too dry, add more water, a little at a time.
Transfer the dough to a lightly floured surface. Roll out the dough to about ⅛ inch thickness.
Cut the dough into squares or your desired shape using a sharp knife or pizza cutter.
Place the cut crackers onto the prepared baking sheet, spacing them about 1 inch apart.
Bake in the preheated oven for 18-20 minutes or until the edges are lightly golden and crisp.
Remove from the oven and allow the crackers to cool on the baking sheet for a few minutes before transferring them to a wire rack to cool completely.