In a food processor, pulse cheese and butter until well blended. Add flour, sugar, salt, and curry powder, and pulse several times until well mixed. Add the water, and pulse 2 or 3 more times. Turn dough out onto a clean surface; knead with hands until smooth. Gather dough into a ball, divide in half, and shape each half into a 9-inch log. Wrap in plastic and refrigerate at least 2 hours or up to 3 days.
Heat oven to 375°F. Grease 2 baking sheets. Slice logs into 1/4-inch disks and place on prepared baking sheets. Place paprika in a small bowl. Dip small cookie cutter in paprika, then lightly press onto a biscuit. Repeat, dipping cutter in paprika for each biscuit. Bake 15 to 20 minutes, until just golden.
In a food processor, combine 1 cup of the sugar and the jalapeno peppers. Process until jalapeno peppers are completely ground; sugar will look green. Transfer to a large saucepan. Cut green and red bell peppers into chunks. Chop pepper chunks into small pieces in food processor. Add peppers, vinegar, and remaining sugar to saucepan and bring to a boil. Add both pouches of pectin, and boil 1 minute. Skim foam from surface. Let cool for 1 hour. Stir, then transfer to clean jars and cover. Refrigerate up to 6 months. Makes 9 cups.