Preheat oven to 400F and line two baking sheets with parchment paper or silicone mat.
In a large bowl, whisk together flour, sugar, paprika, and salt.
Using a cheese grater, shred butter onto flour mixture. Using your hands, combine until thoroughly mixed.
In a small dish, mix together the water and vanilla and pour liquid into the flour and butter mixture. Stir this until it comes together. You made need to use your hands a bit to really mix this together. If the dough appears dry add a touch of water, but not too much, as you do not want the dough to become sticky.
Split the dough in half. On a floured surface or on a non-stick mat, roll out one half of the dough very thin (1/16th inch). Using a pizza cutter, large knife, or cookie cutters, cut into whatever shape you desire. Immediately after cutting, transfer the crackers onto lined baking sheets. Repeat as necessary. Sprinkle with more salt, if desired.
Bake for 8-10 minutes, watching closely, because they can burn quickly. Half way through baking, rotate the pans to ensure even baking. Cool completely. Store in an air-tight container.
This recipe also works with all-purpose gluten free flour mix (one that already has xanthan gum in it). Adapted from King Arthur Flour Cookbook.