With our technique, there's no worry about the cold butter staying in pea-size pieces. Instead, you'll cube some of the butter and grate the rest and put it in the freezer.
Process the cubed butter with some of the flour all the way to a homogenous paste. The fat coats all these flour particles, “waterproofing” them. Then, break that paste mixture into chunks, pulse the chunks with the remainder of the flour to create smaller pieces and add the grated butter.
Finally, sprinkle on ice water and, thanks to the waterproofing step, the water is absorbed only by the second portion of flour.