Saute onion in oil until translucent. Sift flour, baking powder and salt into a mixing bowl. Cut in butter. Stir in cheese, then onions. Beat egg with milk and add to dry ingredients.

On a large greased cookie sheet, drop this dough by heaping tablespoonfuls that just touch each other in a large circle. Bake at 400 degrees F (200 degrees C) for 15 to 20 minutes or until bread is a golden brown.