Position rack in center of oven and preheat to 450F. Combine 1/3 cup aquavit and 2 teaspoons caraway in medium bowl. Let stand 15 minutes.

Blend flour, sugar, baking powder and salt in processor. Add butter and cut in using on/off turns until mixture resembles coarse meal. Beat 1 egg and milk into aquavit mixture. Pour liquids over dry ingredients and process, using on/off turns, just until moist clumps form. Gently knead dough on floured surface to combine, about 6 turns.

Press out dough to 7-inch round. Cut round into 8 wedges. Transfer wedges to baking sheet, spacing apart. Beat remaining egg to blend in small bowl. Brush biscuits lightly with beaten egg. Bake until biscuits are puffed and golden brown, about 15 minutes. Transfer biscuits to platter. Cool 10 minutes. Serve warm.