Pulse 1 cup flour, 4 tbls cubed butter, 1 1/2 cup cubed cheddar cheese, 1/2 cup parmesan cheest, 1/2 tsp salt, and 1/2 tsp pepper together using a food processor until the mixture resembles coarse meal.
Pulse in 4 tablespoons of water, one tablespoon at a time, and only enough so that the dough forms a ball and rides the blade. Remove, wrap in plastic, and chill for 20 minutes or up to 24 hours.
Line 2 baking pans with parchment paper and set aside. Roll the dough out to 1/8-inch thickness. Cut out as many crackers as possible. Place them 1 inch apart on the prepared baking pans.
Bake at 350 until golden and crisp - 15 to 20 minutes.