For the best results, shred the Cheddar cheese from a block or round. Preshredded, bagged cheese doesn't work well in this recipe. The sharp Cheddar gives extra flavor--don't substitute regular Cheddar.
Process cheese and butter in a food processor until blended. Add flour, salt, and paprika; process until mixture forms a ball, stopping once to scrape down sides. Add cereal and almonds; process until blended, stopping twice to scrape down sides.
Shape dough into 1-inch balls. Place balls 2 inches apart on ungreased baking sheets. Flatten each dough ball in a crisscross pattern with a fork dipped in flour.
Bake at 350°, in batches, for 14 to 15 minutes or until lightly browned. Remove to wire racks to cool. Store in an airtight container up to 1 week.