Preheat your oven to 350°F. Line a baking sheet with parchment paper; set aside.

In the bowl of a food processor, pulse together cheese, butter, flour, salt, garlic powder and onion powder until mixture resembles coarse sand. Drizzle in water while pulsing the food processor just until a dough comes together.

Remove dough from food processor; press and roll into a disk shape, then cover tightly with plastic wrap. Chill dough for at least 20 minutes (up to 1 day).

On a lightly floured surface, roll out dough to 1/4-inch thickness. Using a goldfish cracker cookie cutter or other small cookie cutter, cut dough into shapes. Poke each cracker once with a toothpick to form the "eye" and also keep crackers from puffing too much in the oven. Reroll scraps once, if needed, to make more crackers.

Place crackers at least 1/2-inch apart on prepared baking sheet (you may need to bake in batches). Sprinkle with flaky sea salt, if desired. Bake for 11 to 13 minutes or until crackers are puffed and golden. Cool completely on baking sheet.

Store fully cooled leftover crackers in an airtight container at room temperature for up to 1 week.