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When ready to cook, start the Traeger grill on Smoke with the lid open until the fire is established (4 to 5 minutes). Set the temperature to High (400 to 450F) and preheat, lid closed, for 10 to 15 minutes.
In a mixing bowl, whisk together the flour, baking powder, and salt. Cut in the butter with a pastry blender or two knives until the mixture resembles bread crumbs. Pour in the milk and stir just until you have a soft dough. Add a bit more milk if needed. Do not overmix or the biscuits will be tough.
Tip the dough onto a lightly floured surface and gently knead with floured hands until it comes together. Pat into a disk about 1/2-inch thick. Flour a round cookie or biscuit cutter and cut (don't twist the cutter) into biscuits. Transfer to an ungreased cookie sheet, preferably one that's air-insulated. Reroll the dough scraps. (Note: Biscuits from rerolled dough won't be quite as tender.)
Put the baking sheet on the grill grate and bake the biscuits until risen and golden brown, 10 to 12 minutes, depending on how hot your grill is. Serve warm with butter and/or jam, if desired. Best when freshly made.