Place the freshly grated cheddar cheese, cold cubed butter, all-purpose flour, fine sea salt, and onion powder into the bowl of a food processor fitted with the steel blade.

Pulse the mixture repeatedly until it resembles coarse, sandy crumbs and the butter is broken down to small pea-sized bits.

Drizzle 2 tablespoons of ice water through the feed tube and pulse until the dough begins to clump together into large, moist curds. If the dough seems dry, add the remaining tablespoon of ice water one teaspoon at a time.

Turn the dough onto a clean surface and press firmly into a flat disk. Wrap in plastic wrap and chill in the refrigerator for 30 minutes.

Preheat your oven to 350°F (175°C). Line two large baking sheets with parchment paper.

Roll the chilled dough between two sheets of parchment paper to an even 1/8-inch thickness.

Cut out shapes using a mini fish-shaped cookie cutter (or cut into small 1/2-inch squares using a pastry wheel). Use a toothpick to poke a small eye hole and smile onto each fish if desired.

Transfer the cut crackers onto the prepared baking sheets, leaving 1/4-inch space between them.

Bake at 350°F for 13 to 15 minutes until the edges are lightly golden and the crackers are firm.

Turn off the oven, crack the oven door open slightly, and let the crackers sit inside for 10 minutes to crisp up fully before transferring to a cooling rack.