1. Preheat oven to 450° F.
2. Mix together flour, baking powder and salt in large bowl.
3. Cut butter into the mixture using the 2 knives or pastry blender.
4. Continue cutting in until butter is the size of small peas.
5. Slowly add milk. Start with 2/3 cup and add more, if necessary, just until dough leaves the side of the bowl and rounds up into a ball.
6. Add cheese.
7. Turn dough onto lightly floured, clean surface.
8. Knead lightly about 10 times, until the dough feels rights; it should not stick to your hands!
9. Pat dough down to about 1/2 inch thick.
10. Cut out small circles using the rim of a glass or a cookie cutter.
11. Place on ungreased cookie sheet, about 1 inch apart.
12. Bake until golden, about 10-12 minutes.

Serve warm. Delicious with jam!