Preheat your oven to 400°F (200°C) and line a baking sheet with parchment paper.

In a large mixing bowl, whisk together the flour, granulated sugar, salt, and baking powder.

Cut the cold unsalted butter into small cubes and blend it into the dry ingredients until it resembles coarse crumbs.

In a separate bowl, whisk together the egg, milk, and vanilla extract, then gently fold into the dry ingredients until just combined.

Lightly flour your work surface and knead the dough gently 4-5 times, then roll to about 1/2-inch thickness.

Using a 2-inch round cutter, cut out circles and place them onto the prepared baking sheet.

Bake for 12-15 minutes until light golden; they should remain soft in the center.

Allow the cakes to cool on a wire rack before dusting them generously with powdered sugar.