Cracked or peeling paint can occur on cedar siding for a number of reasons according to william feist of the western red cedar lumber association.
How to remove paint from cedar shake siding.
Once the paint has been removed the siding can readily accept a semi transparent stain that will accentuate the cedar s natural color and prevent it from graying.
Cedar is a soft wood and the force of a power washer while it will take the paint off easily enough will also very likely damage the wood and drive moisture deep into it causing your future paint job to peel.
Remove paint from cedar shingles but if your home is sided in traditional cedar shingles you re stuck doing it the old fashioned way.
You re better off using a clear coat product or a transparent or opaque water based stain.
The paint will begin to peel and the shingles may become stained and they will need to be repainted.
While you can certainly apply a paint to cedar shingles if you desire it may not be worth the effort as peeling paint will be hard to remove from the individual cedar shakes.
How to restore and maintain cedar shingle siding by laurie brenner.