Sift together the flour, baking powder, salt, and cayenne pepper. On medium speed of electric mixer, cream the butter or margarine. Reduce speed to low and blend in the cheese, then the dry ingredients. Add eggs and water. Dough should be about the consistency of pie dough. Gather it together into a smooth ball, wrap in plastic film (or wax paper), and chill. Roll dough about 1/4 inch thick and cut into strips 4 inches long and about 1 inch wide. Sprinkle with paprika, if desired, and bake on an ungreased baking sheet for 10 to 15 minutes, or until lightly brown. Note: Sharp cheese is more costly than either mild or medium cheese. These less expensive cheeses may be used, if desired, and the flavor can be picked up with a little dry mustard, cayenne pepper, and salt. In the above recipe, about 1/4 teaspoon dry mustard would be a good beginning. Add more or less the second time around, as desired. Variation: Use 1 cup biscuit mix; add to it the shredded cheese, cayenne pepper, eggs, water, and paprika.