1. Heat oven to 350 degrees F.
2. In food processor, pulse together with on-and-off motion flour, butter, Jarlsberg, Parmesan, rosemary, thyme, garlic salt, nutmeg and cayenne pepper until combined and mixture resembles small peas. Add egg yolk and water. Pulse until ball forms. If mixture is too dry, add 1 teaspoon water and pulse until dough comes together. Turn out onto lightly floured work surface; knead a few times to blend, if necessary. Divide dough in half.
3. On floured surface, roll out each half of dough to 1/4-inch thickness. Cut into star shapes using 2-1/2-inch star cookie cutter, flouring cutters well to avoid dough sticking to cutter. Place stars on ungreased baking sheet. Gather scraps together, reroll and cut out more stars for a total of 48. Sprinkle tops with coarse salt.
4. Bake in 350 degree F oven for 18 minutes or until firm and lightly browned around edges. Let biscuits cool on baking sheets on wire racks for 2 minutes. Transfer biscuits to racks; let cool completely.
5. Lightly sprinkle paprika over biscuits, if desired. Store in airtight container at room temperature for up to 1 week.
6. To give as a gift, place biscuits in decorative airtight container and present with a bottle of sparkling wine, if desired. Makes 4 dozen biscuits.