In a large bowl, whisk together flour, sugar, baking powder and salt. Using you fingers or a pastry blender, mix in cream cheese and butter until the mixture resembles coarse crumbs. Add in milk and stir together with a wooden spoon until a shaggy dough forms.
Turn dough out onto lightly floured counter and dust with additional flour. Roll out to a rectangle about a half an inch thick. Fold letter-style into thirds, and repeat rolling and folding two more times.
Roll into a square about a 3/4 of an inch high and cut into nine portions. Place on lined baking sheet, about a half an inch apart, and bake for about 15-17 minutes or until golden brown. Serve fresh from the oven with lots of butter.