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Soak the cashews: place them in a bowl, cover with cold water, and soak for at least 4 hours. For a quick soak, cover with boiling water and soak for 30 minutes. Drain and rinse before using.
Add the drained cashews, 3/4 cup water, nutritional yeast, lemon juice, Dijon mustard, garlic powder, onion powder, smoked paprika, and 1/2 tsp salt to a blender. Blend on high until completely smooth and no gritty texture remains, about 60–90 seconds. Set aside.
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