Stir the water, curing mixture, mustard seed, garlic powder, black pepper, and liquid smoke in a large bowl until the curing mixture has dissolved. Mix in the ground venison, Cheddar cheese, and jalapeno peppers; mix until evenly blended and somewhat sticky, about 3 minutes. Divide the mixture in half, and roll each half into 2 inch thick logs. Wrap each log tightly with aluminum foil, and refrigerate for 24 hours.
Preheat an oven to 300 degrees F (150 degrees C). Line a baking sheet with aluminum foil, then remove the foil from the sausage logs, and place them onto the baking sheet.
Bake in the preheated oven until the internal temperature reaches 170 degrees F (75 degrees C), 1 1/2 to 2 hours. Cool the sausages on a rack until they have cooled to room temperature. Dab occasionally with a paper towel to absorb excess grease. Slice thinly to serve.