Preheat the oven to 400°F (200°C). Line a baking sheet with parchment paper or lightly grease it.
In a large mixing bowl, whisk together the flour, baking powder, salt, garlic powder, and onion powder until well combined.
Add the cold, cubed butter to the flour mixture. Using a pastry cutter or your fingers, work the butter into the flour 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 this mixture into the dry ingredients and stir until just combined. Do not overmix.
Turn the dough out onto a lightly floured surface and gently knead it a few times until it comes together. Pat the dough into a 1-inch thick rectangle.
Use a biscuit cutter or a glass to cut out biscuits and place them on the prepared baking sheet. Gather any scraps and repeat until all dough is used.
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 slightly before serving.