This recipe came from one of Edna Staebler's Food that really Schmecks cook books and is absolutely delicious! I truly believe the secret is treating the biscuit dough like pie crust.
Lorna's drop cheese biscuits
1 c. flour
1/4 cup cold butter
2 tsp. baking powder
1 c. grated sharp cheddar
1/2 c. ice cold water
Mix flour and baking powder, then cut in butter like for pie crust. Mix in grated cheese and then the ice cold water. Drop by spoonfuls on a greased cookie sheet. Add a dab of butter on each biscuit before baking (that's optional in my opinion--the biscuits really don't need it). Bake at 400 degrees for 10-15 minutes, depending on the size of your biscuits.