In a large mixing bowl add the flour, baking powder, dill, salt, and pepper and mix well.
Cut the cold cream cheese and cold butter into small cubes. Add the cubed cream cheese and butter to the flour mixture and stir to thoroughly combine. Pour in the milk and mix well until a dough forms (dough will be very dry).
Lay the dough out onto a lightly floured work surface. Roll the dough out into a rectangle about 1-inch thick. Fold the dough rectangle in half and roll out into a rectangle 1-inch thick again. Fold the dough in half again and roll it out into a rectangle 1-inch thick one more time.
Cut the dough into equal size squares or use a biscuit cutter to cut them into rounds. Lay the squares (or rounds) onto an ungreased baking sheet about 1-inch apart.
Bake in the preheated oven for 10 to 12 minutes or until lightly browned.
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