Combine Cheddar cheese, butter, and flour in a food processor and process until mixture resembles coarse meal. Process for an additional 5–6 seconds or until mixture forms a ball. Chill, wrapped in plastic wrap, for 30 minutes. Shape into 2-inch balls. Arrange 1 inch apart on an ungreased baking sheet. Bake at 400° for 5 minutes.
Make a small indention on the top of each ball. Spoon one teaspoon of the hot pepper jelly into each indention. Bake for 5 minutes longer or until golden brown. Cool on the baking sheet for 2 minutes; remove to a wire rack to cool completely.
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