In a food processor, combine the flour, salt, cayenne, smoked paprika, and black pepper and garlic powder, if using. Pulse to combine.
Add the butter and cheese and process until the dough is smooth and has the texture of play clay. (Or, make the dough in a stand mixer fitted with the paddle attachment.
On a lightly floured surface, roll dough into 32 small cheese balls. Spray the air fryer basket with nonstick cooking spray. Arrange 16 drops in the air fryer basket.
Set the air fryer to 330°F for 10 minutes or until drops are just starting to brown. Repeat with remaining dough.
Cool cheese drops completely on a wire rack. Store in an airtight container.
Use cold butter to get the lightest texture for these biscuits. You are essentially making a quick pastry dough to put these together.
If you want to freeze these I would suggest that you bake them first and then freeze them. Alternatively, you can form them into the little biscuits and put them on a cookie sheet and freeze them that way. Once they're frozen, put them in a zip top bag and freeze. You can bake them from frozen, but you may have to add a minute or two to the total baking time.
If you plan to make these in the oven, try 350F for 12 minutes as a starting point.