Preheat the oven to 325℉ (160℃).
In a large bowl or in the food processor, mix the flour, salt, pepper, and nutmeg.
Cut in the butter until the mixture resembles coarse meal.
Add the cheese and blend until it is evenly coated.
Blend in the water to form a dough that will hold together in a cohesive ball.
Divide the dough into 2 equal portions for rolling.
On a floured surface of pastry cloth, roll out to about ⅜ inch thick.
Cut into bite-sized squares (about 1 inch by 1 inch).
Arrange on an ungreased sheet, making sure the edges of the crackers are not touching.
Bake for 15 minutes.
Turn the crackers over and continue baking another 10 to 15 minutes, until medium brown.
These crackers should be crisp.
Cool them on racks.