Preheat Oven & Prepare Baking Sheet: Preheat your oven to 450°F (232°C). Do not grease your baking sheet for this recipe.

Combine Dry Ingredients: In a medium bowl, whisk together the all-purpose flour, salt, and baking powder until well combined. Sifting these ingredients can contribute to a lighter texture.

Cut in Shortening: Add the chilled shortening to the flour mixture. Use a pastry blender, your fingertips, or a fork to cut the shortening into the dry ingredients until the mixture resembles coarse crumbs with some pea-sized pieces remaining. Keeping the shortening cold is crucial for creating flaky biscuits.

Whisk Wet Ingredients: In a separate small bowl, lightly beat the large egg with the whole milk and granulated sugar until just combined.

Combine Wet and Dry: Pour the egg-milk mixture into the bowl with the flour mixture all at once.

Form the Dough: Stir the wet and dry ingredients together with a fork until the dough just comes together and follows the fork around the bowl. Be careful not to overmix; a slightly shaggy dough is ideal.

Turn Out and Knead Gently: Lightly flour a clean work surface. Turn the dough out onto the floured surface. Gently knead the dough with the heel of your hand about 10-12 times. This gentle kneading develops some gluten for structure but avoids toughness.

Roll Out the Dough: Use a rolling pin to gently roll the dough to ¾ inch thickness.

Cut Out Biscuits: Use a 2-inch round biscuit cutter and cut straight down without twisting. Twisting can seal the edges and prevent the biscuits from rising evenly.

Arrange on Baking Sheet: Place the cut biscuits on the ungreased baking sheet. For softer sides, arrange them close together so they touch. For crustier sides, space them about 1 inch apart.

Bake: Bake in the preheated oven for 10-14 minutes, or until the biscuits are golden brown on top.

Serve: Serve the warm Cloud Biscuits immediately.