Preheat your oven to 400°F (200°C).

Whisk together the dry ingredients in a large bowl: flour, sugar, salt, and baking powder.

Blend in the cold butter cubes until the mixture resembles coarse crumbs.

Combine the wet ingredients in a separate bowl: whisk the egg, milk, and vanilla extract.

Turn out the dough onto a floured surface. Gently knead it a couple of times, then roll it out to about 1/2-inch thickness.

Cut 2-inch rounds using a cookie cutter and place them on a parchment-lined baking sheet.

Bake for 12-15 minutes, until the bottoms are just lightly golden.

Cool the cakes on a wire rack, then dust generously with powdered sugar before serving.