Place flour, sugar, and salt in the bowl of a food processor. Pulse to combine.
Slice butter into 1 tablespoon chunks and place on top of the flour mixture in the food processor. Place lid on food processor and pulse until the butter is pea-sized.
Add cheese and milk to the flour mixture and pulse just until the mixture is moistened.
Lightly flour a clean surface. Place dough mixture on top of surface and knead until the dough comes together, being careful not to overwork the dough.
Place ¼ cup portions of the dough onto a baking sheet that has been lined with parchment paper or Silpat. Position biscuits 2-inches apart. Bake for 15 to 20 minutes or until golden brown.