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Bring 3 cups of water to a boil. Pour the hot water over the cashews and let soak for 5 minutes. Prepare 2 small ramekins or 1 larger dish by lightly spraying with oil.
Drain the cashews and discard the soaking water. Add them to a blender along with the lemon juice, refined coconut oil, nutritional yeast, cornstarch, paprika, turmeric, salt and 1 cup of fresh water (not the full 2 cups). Blend well, scraping down the sides of the blender as needed, until completely smooth.
In a small-medium pot, add the remaining cup of water and the agar agar powder. Stir until it dissolves (this only take a minute). Now add the cashew mixture from the blender to the pot.
Turn the heat on to high, bring to a boil and stir for 1-2 minutes, whisking constantly. It will thicken somewhat in the pot.
Immediately pour the cheese into the prepared ramekins and smooth out the top with a spoon.
Refrigerate for 2-3 hours until firm, then turn upside down on a plate to remove the cheese from the container. Slice and serve in sandwiches, make a grilled cheese sandwich, spread on crackers and eat as a snack.