Preheat the oven to 200°C
In a large bowl, sift together flour, baking powder and sugar.
Rub in the butter using your finger tips, until mixture resembles coarse bread crumbs.
In another bowl whisk the egg and milk together. Make a well in the center of the flour mixture and pour in the egg mixture and combine to form a soft dough.
On a lightly floured surface knead the dough gently and form into a ball. You will know the dough is ready when you poke it with your finger and the indentation fills back quickly. If it looks like a deep dimple, continue kneading and if it's sticky you can add or sprinkle a little bit of flour.
Starting in the middle, roll out the dough until it's about an inch thick. Cut out the dough using a floured 2 inches round cookie cutter. Avoid twisting the cutter or the scones wont rise evenly.
Arrange the dough with 2 inches apart on a greased and floured 10 x 15" baking pan. Brush the top with milk and bake for 12-15 minutes or until risen and golden.