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Preheat oven to 425°F.
Line two large baking sheets with parchment paper.
In a medium saucepan, combine milk, butter, salt and cayenne pepper. Bring to a boil over medium heat.
Turn heat to low and add all of the flour at once. Stir until very smooth. Continue cooking and stirring until it forms a dough that doesn't stick to the sides/bottom of the pot and is no longer sticky, about 2-3 minutes. Remove from heat and cool for 5 minutes.
While the flour mixture is cooling, completely whisk eggs in a separate bowl. Remove 2 tablespoons of the eggs for an egg wash and set aside.
Add the egg mixture to the dough a little bit at a time, stirring with a spoon after each addition. Once the eggs are completely incorporated, stir in the shredded cheese.
Place the mixture into a freezer bag or a piping bag and pipe into 1" circles (about ¾" high) on the prepared baking sheet. With wet fingers, smooth the top of the mounds.
Whisk the reserved egg with 1 teaspoon water and brush over the puffs. Sprinkle with additional cheddar if desired.
Bake for 10 minutes at 425°F and then lower the temperature to 350°F and cook for 18-19 minutes or until they are puffed and browned.