Pre-heat the oven to 350°F.
Dissolve the baking powder in the warm milk, add 1 tablespoon flour, and the sugar. Stir until well combined. Set aside for 5 minutes.
In a medium bowl, Add the butter and stir well. Add the egg, flour, salt, cheese and using your hands mix well. Cover with plastic and let it sit at room temperature for about 40 to 50 minutes.
Divide the mixture into 12 equal size portions, shaping them into balls or doughnut shape. Cover loosely with plastic wrap and let it sit at room temperature for about 30 minutes.
Place on a baking sheet lined with parchment paper and bake for about 25 to 30 minutes or until golden on top. Serve warm.