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Preheat oven to 180°C. Line 2 baking trays with baking paper.
Using an electric mixer, beat butter, sugar and vanilla in a small bowl until pale and creamy. Add egg and mix until well combined. Sift flour and baking powder over butter mixture. Add milk and stir until just combined.
Using 1 heaped tablespoon of mixture at a time, roll mixture into balls. Place on baking trays lined with baking paper. Using the heel of your hand, flatten biscuits slightly (allow room for spreading).
Bake for 15 to 18 minutes, swapping trays over in oven after 10 minutes, or until light golden. Allow biscuits to cool on trays for 5 minutes. Transfer to wire racks to cool completely. Serve.