Preheat oven to 350 degrees. Cut butter into flour using a fork or pastry cutter until mixture resembles coarse meal. Stir in cheese, salt & pepper. Fold in cereal. Shape into 1 inch balls and place 2 inches apart on ungreased baking sheet.
Flatten each dough ball. Bake in batches for 15 minutes. Refrigerate remaining baking sheet while first batch is baking.