In a stand mixer fitted with a paddle attachment, beat 1/4 cup softened butter, 8 ounces of grated sharp cheddar cheese, and 3/4 teaspoon salt on medium speed for about one minute until fully combined. Gradually add 1 cup of all-purpose flour, mixing until a dry, crumbly mixture forms.

Pour in 2 tablespoons of cold milk or water into the mixing bowl. Continue mixing on low speed until the dough begins to come together and forms a cohesive ball. Once formed, shape the dough into a disc, wrap it in plastic wrap, and refrigerate for at least 1 hour.

Preheat your oven to 350°F (175°C) while the dough chills. Line two baking sheets with parchment paper to prevent sticking and ensure an even bake.

Once the dough is chilled, lightly flour your work surface. Take half of the dough and roll it out to about 1/8 inch thick.

Using a pastry cutter, cut the rolled dough into 1-inch squares, following a grid pattern for uniformity. Poke a small hole in the center of each cracker with a chopstick.

Place the cut crackers onto your prepared baking sheets, leaving space between them for expansion. Bake for approximately 15 minutes, or until they turn golden brown and crispy.

After baking, allow the crackers to cool on the baking sheets for a few minutes before transferring them to a wire rack.