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Prepare the Dry Ingredients: In a large mixing bowl, whisk together the flour, baking powder, and salt.

Cut in the Butter: Add the cold, cubed butter to the flour mixture. Use a pastry cutter or fork to cut the butter into the flour until the mixture resembles coarse crumbs.

Add the Cheese: Stir in the shredded cheddar cheese until evenly distributed.

Add the Milk: Pour in the milk and stir until just combined. Be careful not to overmix the dough.

Form the Biscuits: Turn the dough out onto a lightly floured surface and gently knead it a few times. Pat the dough to about 1/2-inch thickness. Use a round biscuit cutter to cut out the biscuits. Re-roll the scraps as needed to cut out more biscuits.

Prepare for Air Frying: Preheat your air fryer to 350°F (175°C) for about 5 minutes. Place the biscuits in the air fryer basket, ensuring they do not touch each other.

Brush with Egg Wash: Lightly brush the tops of the biscuits with the beaten egg for a golden color.

Air Fry the Biscuits: Air fry the biscuits at 350°F (175°C) for 10-12 minutes, or until they are golden brown and cooked through.

Cool and Serve: Remove the biscuits from the air fryer and let them cool slightly on a wire rack before serving.