Sift together flour, baking powder, and salt into a medium mixing bowl. Cut in butter using a pastry blender until mixture resembles coarse meal. Add milk, and stir until dry ingredients are moistened.
Turn dough out onto a lightly floured surface; roll to 1/4-inch thickness, and cut with a 1-inch biscuit cutter.
Drop dumplings into simmering soup or stew, allowing room for dumplings to expand during cooking. Reduce heat; cover and simmer 15 minutes or until dumplings are plump and tender. (Do not lift cover during cooking time.)