In a large bowl, combine the flour, sugar, baking powder, pepper, and salt. In a small bowl, beat together the milk, oil, and egg. Add the egg mixture to the flour mixture and stir just until blended. Do not overmix. Fold in 1 cup of the cheddar cheese and all the Parmesan cheese. Spoon the mixture into greased or paper-lined muffin tins and sprinkle with the remaining cheddar cheese. Bake in a preheated 400 degree oven for 15 to 20 minutes.