Step 1: In a food processor, pulse together Cheddar and Parmesan cheeses with butter, until smooth.
Step 2: Add egg yolk and pepper; pulse until blended.
Step 3: Add flour, pulse just until a soft dough forms.
Step 4: Place pecans on a plate and place 1 cup of water in a bowl.
Step 5: With hands, roll scant tablespoonfuls of dough into 1-inch balls.
Step 6: Wet balls with water and roll in pecans to coat.
Step 7: Place on an ungreased cookie sheet (I line mine with parchment for easy cleanup). With thumb or finger, make an indent in each cookie.
Step 8: Refrigerate for 15 minutes.
Step 9: Bake in centre of oven at 350 F for about 15 minutes or until firm outside and lightly golden.
Step 10: Let cool on baking sheet.
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