Preheat your oven to 350°F (175°C).
In a mixing bowl, add the room-temperature butter and shredded sharp cheddar cheese. Blend until creamy and well combined.
Add the kosher salt, cayenne pepper, black pepper, garlic powder, and all-purpose flour to the cheese mixture. Stir until a dough forms.
Place the dough on a lightly floured surface. Roll it out to about 1/8 inch thick.
Using a cookie cutter or a knife, cut the dough into desired shapes. Place on a baking sheet lined with parchment paper.
Bake for 12-15 minutes or until golden brown and crispy.
Remove from the oven, let cool on the baking sheet for a few minutes, then transfer to a wire rack to cool completely.