Preheat the oven to 200C/400F/180FAN/Gas6.
Grate the cheese and set aside.
Put the bacon in a frying pan or skillet over a medium heat and cook for a few minutes until cooked through.
Transfer the bacon to some kitchen paper to drain any excess grease for a few minutes and then chop the bacon into small pieces less that 1 cm or half an inch.
Chop the butter into cubes to speed up the mixing process.
If you have a food processor add the flour, baking powder, paprika and butter and pulse a few times until the mixture is combined then tip into a large mixing bowl.
To make by hand put the same mixture in a bowl and use the rubbing in method to combine the flour and butter until it resembles fine breadcrumbs.
Tip in the chopped bacon and grated cheese and stir to combine.
Make a well in the centre of the mixture and add the milk.
Use a dinner knife to mix, drawing the flour in from the sides, until the mixture comes together in a soft dough.
Scatter a little flour onto a surface and spread the dough out with your palms until it is about 2.5 cm high or 1 inch.
Use a 6 cm or 2.5 inch square cutter or just use a knife to cut the scones into squares.
Put the squares on a non-stick baking sheet
Mix the egg and water together and use a pastry brush to glaze the scones.
Bake for 15-20 minutes until well risen and golden.
Allow to cool for a few minutes on the tray and then transfer to a cooling rack.