Heat oven to 375°F.
In medium bowl, combine the flour, salt, puffed-rice cereal and ground red pepper. Using a pastry blender, cut in margarine until well blended. Cut in cheese until combined.
Add water, 1 tablespoon at a time, tossing with fork until dough comes together; there should still be clumps of cheese in dough. Cover and chill for at least 2 hours.
Roll out half the dough to a 1/2-inch thickness. Cut out rounds with 3-inch cookie cutter. Cut each round into 4 equal wedges. Place the wedges on ungreased baking sheets. Repeat with the remaining half of dough, rolling and cutting and placing on baking sheets.
Bake in 375°F oven for 20 minutes or until lightly golden. With small metal spatula, remove the petites to a wire rack to cool. Lightly sprinkle paprika over the top of each petite and serve in a bowl as an appetizer.