Preheat oven to 425°F.
In a large bowl combine the flour, baking powder, and salt.
With a pastry cutter or two knives, cut in the cold butter into the dry ingredients.
Add the milk and stir with a fork until the dough holds together.
Gather dough into a ball, then divide into 4 equal portions; lightly knead each portion 15 strokes.
On a lightly-floured board roll out one of the portions to ¼ inch thick, sprinkle with ½ cup cheddar, then fold dough in half and roll it back out to ¼-inch thick and about 6 inches wide.
Cut the cheesed dough crosswise into ½-inch strips, tie each into a loose knot, and place on a non-stick or lightly sprayed baking sheet 1 inch apart from each other; sprinkle with cayenne pepper to taste.
Bake for 10 minutes.
Repeat the steps to add the cheese to the dough, cutting into strips, tying, and baking with the other 3 portions of dough.