Sift the flour, salt, and baking powder into a bowl. Cut in the butter until very fine. Add the milk and egg and mix to make a stiff dough. Knead thoroughly and then roll the dough very thin. Cut into squares or rounds and place on lightly buttered cookie sheets. Prick the crackers with a fork and then bake in a 400 degree oven for 10 minutes, or until very lightly browned. If desired, crackers may be sprinkled with coarse salt.
Soda Crackers. Follow the basic recipe, but substitute sour milk for sweet milk, omit the baking powder, and add 1/2 teaspoon soda.