Gather all ingredients.

Blend Cheddar cheese, flour, and butter in a food processor until dough is a coarse-meal texture and forms into a ball.

Wrap dough in plastic wrap and refrigerate for 30 minutes.

Preheat oven to 400 degrees F (200 degrees C). Shape dough into 1 ½-inch balls and place 1-inch apart on a baking sheet.

Bake in the preheated oven for 5 minutes. Remove from the oven; press thumb into top of each ball, creating an indentation.

Spoon about 1 teaspoon pepper jelly into indentation. Bake until edges are golden brown, about 5 minutes.