Line a baking sheet with parchment paper; set aside. In a 2-qt. saucepan, bring water, butter and salt to a boil over medium heat. Add flour all at once and stir until a smooth ball forms, about 2 minutes.
Remove from the heat; let stand 5 minutes. Add eggs, one at a time, beating well after each addition. Continue beating until mixture is smooth and shiny. Stir in 1/2 cup cheese, jalapeno and cayenne.
Drop into 1-in. mounds onto prepared baking sheet 2 in. apart. Sprinkle dough with remaining cheese. Bake at 350° for 20-25 minutes or until lightly browned.
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