1 - Preheat oven to 400F. Lightly grease baking sheet.
2 - Combine flour, cheese, dry milk, chives, sugar, baking powder and salt in medium bowl. Cut in butter with pastry blender or 2 knives to make coarse crumbs. Stir in water just until moistened.
3 - Knead dough 10 times on lightly floured surface. Pat into 8 x 6-inch rectangle. Cut into 12 biscuits. Place biscuits about 2 inches apart on prepared baking sheet.
4 - Bake for 12 to 16 minutes or until light golden brown. Serve warm.
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