Step 1: In large food processor, pulse red pepper until finely chopped. Add white cheddar cheese, butter, flour, sugar, chili powder and salt. Pulse until dough starts to hold together, adding water a little at a time until dough holds together when squeezed.
Step 2: Turn out dough into a bowl and knead lightly into a smooth dough. Shape into a flat square. On a sheet of parchment paper with a floured rolling pin, roll out to a 9-inch square, about 1/2-inch thick. Slide onto a baking sheet and refrigerate for at least 20 min or until cold.
Step 3: Meanwhile, preheat oven to 300°F.
Step 4: Using a pizza cutter or a knife, cut square into 8 equal strips. On a diagonal, make seven cuts along each strip, about 1 inch (2.5 cm) apart, into 56 diamonds (there will be triangles at the ends of the strips – either press together into diamonds or bake as triangles).
Step 5: Lightly brush tops with egg white and sprinkle with coarse sea salt. Separate shortbread pieces on the parchment so they are at least 1/2 inch (1 cm) apart, using a second parchment-lined baking sheet if necessary.
Step 6: Bake, one sheet at a time, for about 27 min or until firm and just starting to turn golden around the edges. Let cool on pan on a wire rack for 3 min then transfer to rack. Serve warm or let cool.
Step 7: Shortbread can be stored in a cookie tin at room temperature for up to 5 days. Warm in a 350°F oven for about 5 min before serving.
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