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In a medium bowl, whisk together almond flour, cheddar cheese powder (if using), xanthan gum and salt.
Stir in shredded cheese.
Add water and stir until a dough forms. It may seem like there is not enough water at this point start to knead the dough with your hands and it should come together as a dough similar to play doh texture.
Place dough in between two sheets of parchment paper. Flatten into a square or rectangle shape. Roll out dough, trying to keep a square or rectangle shape as much as possible. Roll until the dough is about as thick as a dull pencil tip or thickness of a fork prong. Carefully peel off the top layer of parchment paper. (See video above for best practices on rolling the dough)
Using a pizza cutter or knife, cut dough into squares. To give the center a hole to prevent the crackers from puffing too much and for that iconic cheez-it appearance, use a skewer or chop stick to poke a hole in the center.
Bake in a 250 degree Fahrenheit oven for 20-25 minutes. Take them out just before they turn golden brown around the edges. The cheez-its will continue to harden and get crispy as they cool.