Sift the flour, baking powder, and salt together and mix with the grated cheddar cheese. Cut the butter into the dry ingredients, add the milk and mix quickly but thoroughly. The dough should be soft. Turn onto a floured board and knead lightly for a few seconds. Pat to a 3/8-inch thickness and cut. Bake on a baking sheet in a hot-oven (450 degrees F.) about 30 minutes or until lightly browned. Serve hot.