Preheat your oven to 400°F (200°C) and prepare a parchment-lined baking sheet.

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

Cut the cold, cubed unsalted butter into the dry mixture until it resembles coarse crumbs.

In a separate bowl, whisk together the egg, whole milk, and vanilla extract until blended well. Pour this into the dry mixture and gently fold until combined.

Transfer the dough onto a lightly floured surface and knead gently for about 4-5 turns.

Roll out the kneaded dough to a thickness of about 1/2-inch and cut out circles using a 2-inch cutter.

Bake the cakes for 12-15 minutes until they are light golden on top.

Let them cool on a wire rack, then dust with powdered sugar before serving.