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1. Stir together flour, baking powder, and salt in a medium mixing bowl. Using a pastry blender, cut in butter until mixture resembles coarse crumbs. Make a well in the center.
2. Snip any large pieces of preserves. Combine 1/2 cup milk and the preserves in a small bowl. Add all at once to dry ingredients. Stir just until dough clings together. Turn out onto a lightly floured surface. Quickly knead by gently folding and pressing dough 10 to 12 strokes or until nearly smooth.
3. Lightly roll or pat until 1/2 inch thick. Cut with a floured 2-1/2-inch biscuit cutter, dipping cutter into flour between cuts. Place biscuits 1 inch apart on an ungreased baking sheet. Brush tops with milk. Combine sugar and cinnamon in a small bowl. Sprinkle over biscuits.
4. Bake in a 450 degree F oven for 7 to 10 minutes or until golden brown. Serve warm. Makes 10 biscuits.