In a large bowl, whisk together the flour, salt, and baking powder. Using your hands or a pastry cutter work the butter into the flour mixture until pea-sized granules are formed.
Add the water and egg and mix until a dough forms.
Turn the dough out onto a lightly floured surface and knead until smooth, about 5 minutes.
Wrap in plastic wrap and refrigerate for at least 1 hour.
Make the filling:
In a large skillet over medium heat, add oil to a cast iron pan or non-stick skillet, heat oil.
Add onion and cook until soft, about 3-5 minutes, then add garlic and cook until fragrant, 1 minute.
Add ground beef and cook, breaking it with a wooden spoon, until no longer pink, 5-7 minutes. Drain fat.
Return pan to medium heat, and stir in the tomato paste, add oregano, parsley, cumin, paprika, salt, and pepper.
Add tomatoes and chiles and cook for about 3-5 minutes. Remove from heat and let cool slightly.
Make the empanadas:
Place dough on a lightly floured surface and divide in half.
Roll one half out to ΒΌβ thick and using a 4.5β round cookie cutter or a cup, cut out rounds. Repeat with remaining dough.
Lightly moisten the outer edge of a dough round with water and place about 2 tablespoons of filling in the center. Top with cheddar and Monterey cheese.
Fold dough in half over the filling. Use a fork to crimp the edges together. Repeat with the remaining filling and dough rounds.
Bake in the oven option:
Preheat oven to 400 degrees F and line two large baking sheets with parchment paper. Set aside.
Place empanadas on prepared baking sheets and brush with egg wash. Bake until golden and filling is warmed through, about 25 minutes.
Garnish with cilantro and serve with sour cream.
Air fry:
Preheat the air fryer to 400 degrees F.
Place empanadas in a parchment-lined Air Fryer basket, making sure they don't touch and cook in batches for 10-12 minutes, or until golden.