Preheat the oven to 200°C (400°F).
In a bowl, mix flour and baking powder.
Add cold butter and rub it into the flour until the mixture resembles coarse crumbs.
Stir in grated cheddar cheese and milk to form a soft dough.
Roll out the dough and cut it into biscuit shapes.
Place the biscuits on a lined baking tray and bake for 12–15 minutes until golden brown.
Let them cool slightly and serve warm.