Shred the cheddar cheese using a shredding disk or grate separately. Remove the cheese and set aside, no need to clean the bowl.

Place the chilis in adobe sauce in a food processor and process until finely chopped, scraping down the bowl as necessary.

Add the cheddar, flour, cornstarch, salt, and paprika into the food processor bowl and process until combined, about 20 seconds.

Scatter the cold butter pieces over the top of the flour cheese mixture and process until the mixture resembles wet sand, about 20-30 seconds.

Sprinkle the water over the flour-butter mixture. Process until dough almost forms a ball, about 20 seconds.

Transfer dough to counter and divide in half. Roll each half into a 10-inch log, wrap in plastic wrap, and refrigerate until firm, at least 1 hour or overnight. (the dough can be frozen at this point and thawed and baked at a later time up to 6 months.

When ready to bake; adjust oven racks to the upper-middle and lower-middle positions and heat oven to 350°

Line 2 rimmed baking sheets with Silpat, parchment paper, or grease them.

Unwrap logs and slice into 1/4-inch-thick disks, giving the dough quarter turn after each slice to keep log round. Place disks on prepared baking sheets spaced 1/2 inch apart.

Bake until lightly golden around edges, 22 to 28 minutes, switching and rotating sheets halfway through baking. Try not to over bake them as they will continue to cook on the baking sheets after they are removed from the oven.

Let the crackers cool completely on the baking sheets before serving.