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Preheat oven to 375 degrees.
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Combine the water, butter and a teaspoon of the salt into a sauce pan and bring to a boil, stirring until butter melts.
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Remove from heat, let cool slightly, stir in flour, and mix well.
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Return the pan to the heat and stir with a wooden spoon over high heat until the mixture comes away from the sides of the pan and remove from heat.
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Stir in eggs, one at a time until well combined.
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Add the diced cheese, the remaining 1/2 teaspoon salt and pepper, stirring well.
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Drop the dough by rounded tablespoons onto a well buttered baking pan. Smooth the top and sides of each gougere with a knife and sprinkle with the grated cheese.
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Bake in batches for 25 minutes or until puffed and golden.