1. Heat oven to 350 degrees F. Coat inside of 8 x 4 x 3-inch loaf pan with cooking spray.
2. Stir together flour, sugar, baking powder and salt in medium-size bowl until well blended. Cut in butter with pastry blender or two knives held scissors fashion until mixture resembles coarse meal.
3. Stir together milk and egg in small bowl. Pour milk mixture all at once into flour mixture; add Cheddar cheese. Stir gently just until flour is moistened; do not overmix. Turn batter into prepared pan, spreading top level.
4. Bake in 350 degree F oven for 35 to 40 minutes or until browned on top and wooden pick inserted in center comes out clean. Remove bread from pan to wire rack to cool. If not serving immediately, wrap loaf in plastic wrap and store at room temperature for up to 3 days. Makes 8 x 4 x 3-inch loaf (10 slices).