Preheat your oven to 400°F. Line a baking sheet with parchment paper.
In a large mixing bowl, whisk together the flour, baking powder, salt, garlic powder, onion powder, and black pepper.
Add the cold cubed butter to the flour mixture. Use a pastry cutter or your fingers to work the butter into the flour until the mixture resembles coarse crumbs.
Stir in the shredded cheddar cheese and cooked 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.
Cut the dough into squares or use a biscuit cutter to shape the biscuits. Place them on the prepared baking sheet.
Bake for 15-20 minutes or until the biscuits are golden brown on top.
Allow to cool slightly before serving.