In the jar of a strong blender, combine the water, cashews, nutritional yeast flakes, coconut oil, liquid smoke, salt, smoked paprika, granulated onion, and lactic acid, and blend until super smooth and there aren’t any bits of nuts. Add the tapioca and carrageenan, and blend for 5 to 10 seconds until smooth.
Pour the cashew mixture into a large saucepan, and bring to a simmer over medium heat, whisking continually. Continue cooking, whisking continuously, for about 7-9 minutes until the mixture has thickened nicely and is very glossy.
Pour the cheese into a smallish container that can contain a minimum of 2 cups volume. I like small loaf pans or glass bowls.
If properly cooked, the cheese will start to set right away. Allow the cheese to set at room temperature for 30 minutes. Then cover and refrigerate the cheese to finish setting for 3 to 4 hours.
If the cheese doesn’t set up properly that means you haven’t cooked it long enough, if this happens to you, throw it back into the saucepan and cook for a few minutes more! It’ll re-melt and then you can pour it back into the mold for it to solidify.

Remove the cheese from the mold and serve.