Mix the flour, baking powder (though you won’t need the baking powder if you’re using self-raising flour) and salt together in a large bowl.
Cut the cold butter into approximately 1cm/½ inch dice and toss into the flour. Rub the butter into the flour as if you were making a crumble. You can do this either with your fingers, a pastry blender, or in a freestanding mixer with the paddle (or pastry beater) fitted. Whichever method you’re using, you should end up with a soft sandy mixture, with a few larger crumbs.
Add the sugar, allspice and sultanas and mix into the flour, and then beat the cold egg in a small jug before pouring into the bowl, and carry on mixing until you have a dough. This takes perhaps more time than you might expect. Be patient and wait for it to start clumping first into small pieces and then into two or three pieces of coherent dough. If this doesn’t happen, by all means add a little milk, but trickle it in very slowly as you don't want it to get too liquid or sticky. Squidge the pieces of dough together and keep squidging and squishing as you form a disc. Wrap this and put in the fridge to rest for 15-20 minutes.
Roll out the dough on a lightly floured surface to a thickness of ½ cm / ¼ inch. Dip your 6cm / 2½ inch crinkled cutter into some flour then stamp out your Welsh Cakes. Squidge the offcuts together and reroll until you have used up all your dough. It is very forgiving so roll and reroll as necessary.
Preheat a griddle or cast-iron frying skillet (don’t add any oil) and cook the cakes for 3 to 4 minutes a side. The only difficult thing is getting the heat right: it needs to be low enough so that the outsides don’t burn before the middle is cooked. I prefer (for once) to proceed a little more cautiously at low heat for 4 minutes before first turning them. Lift one up first and look underneath: it should not feel too soft to flip and the bottom should be a deep gold. Don’t worry if the middle looks just a little squidgy when both sides are cooked and golden brown, as the Welsh Cakes will firm on standing. But do stay hovering over the pan, as it will get hotter as you progress and the flame will need adjusting as you go.
As they’re ready, transfer the Welsh Cakes to a platter or plates and sprinkle generously straightaway with caster sugar. Serve immediately, as Welsh Cakes, like scones, need to be enjoyed freshly cooked. You can eat them cooled, but for me, they are best warm. However, I don’t advise eating them hot from the griddle as they do need 3-5 minutes to settle and firm up. But should you be making these with gluten free flour, then ignore what I’ve just said, and eat them as soon after they’re off the griddle as you can. Any more than 5 minutes standing and all is lost.
