In a medium bowl, stir together 1 1/2 cups all-purpose flour, 1/2 teaspoon baking powder and 1/8 teaspoon salt. Using a pastry blender, cut in 1/2 cup butter until mixture resembles coarse crumbs. Make a well in the center of the flour mixture. Add 2 tablespoons milk and 1 egg, lightly beaten, all at once. Using a fork, stir just until moistened. Turn dough out onto a lightly floured surface. Knead dough by folding and gently pressing dough for 4 to 6 strokes or just until dough holds together. Continue as directed in Step 1.