In a medium bowl combine flour, sugar, and baking powder.

Using your fingers or a pastry cutter cut in butter until mixture resembles coarse crumbs.

Add in milk and mix together with your hands* until all the flour is incorporated, about 5 minutes.

Fold in diced ham and shredded cheese until evenly dispersed.

Pat dough into a circle about 3/4" thick and cut into 8 equal wedges.

Transfer to a lined baking sheet, top each scone with more shredded cheese, and bake at 400 degrees for 18-20 minutes or until golden brown.

Let cool 5 minutes before serving.