Preheat your oven to 400°F. Line a baking sheet with parchment paper.
In a large mixing bowl, combine the flour, baking powder, salt, garlic powder, onion powder, and black pepper. Whisk until well mixed.
Add the cold cubed butter to the flour mixture. Use a pastry cutter or your fingers to blend until the mixture resembles coarse crumbs.
Stir in the shredded cheddar cheese and crumbled sausage until evenly distributed.
In a separate bowl, whisk together the milk and egg. Pour the wet ingredients into the dry ingredients and stir until just combined. Do not overmix.
Turn the dough out onto a floured surface and gently knead it a few times until it comes together. Pat the dough into a 1-inch thick rectangle.
Using a biscuit cutter or a glass, cut out biscuits and place them on the prepared baking sheet. Gather any scraps, re-roll, and cut out additional biscuits.
Bake in the preheated oven for 15-20 minutes, or until the biscuits are golden brown on top.
Remove from the oven and let cool for a few minutes before serving.