01 - Preheat oven to 375°F. Line a baking sheet with parchment paper.
02 - In a mixing bowl, whisk together the all-purpose flour, baking powder, and fine sea salt until evenly distributed.
03 - Add the shredded sharp cheddar, grated Parmesan, cold diced butter, chopped chives, smoked paprika, and garlic powder. Work the mixture with your fingertips until it becomes crumbly and the butter is evenly broken down.
04 - Drizzle in cold water one tablespoon at a time, mixing gently until the dough just comes together and holds its shape without being sticky.
05 - Turn the dough onto a lightly floured surface and roll it out to an even 1/8-inch thickness.
06 - Cut the dough into 2-inch squares or desired shapes using a knife or cookie cutter. Place the pieces onto the prepared baking sheet, leaving a small gap between each.
07 - Bake for 16 to 18 minutes, rotating the sheet halfway through, until the edges are deeply golden and the centers are crisp.
08 - Transfer the baked pieces to a wire cooling rack. Serve warm or at room temperature.