Preheat oven to 350. Lightly grease baking sheet. Stir together the flour, sugar and baking powder. Cut in butter until mixture resembles crumbs. (A food processor works great.) Stir in dried cherries and grated rind. Combine milk and egg. Mix into dry ingredients, gather dough into a ball. Roll dough out 1 cm thick onto a lightly floured surface. Cut into 8 cm circles with a sharp knife or biscuit cutter. (A glass does not work well because it crimps the edges and they will not rise as well.) Arrange on a baking sheet, 3 cm apart. Bake until firm to touch, about 20 minutes. Serve warm.