5 tablespoons chilled butter, cut into small pieces
3 cups shredded reduced-fat cheddar cheese
1¼ cups milk
Preheat oven to 400°F. Lightly coat 2 baking sheets with cooking spray.
In a large bowl, whisk together the flour, baking powder, baking soda, pepper, and salt. Cut in butter with a pastry blender or 2 knives until mixture resembles coarse meal. Add cheese and toss to coat. Slowly stir in milk and mix just to combine.
Drop dough by ¼ cupfuls onto baking sheets, about 2 inches apart. Bake in preheated oven until edges and tops are golden, about 14 to 16 minutes.